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AMB240 Marketing Planning and Management

QUTopia Marketing Plan

Students:

Brooke Moore N8807566

Chloe Livock N8605386

Karla Gumley N7554206

Sophie James N8880662

Tutor: Mr. Naseer Choudhry

Tutorial: Wednesday, 5-6pm

Word Count: 1500

New Breed. The Utensils of QUT QUTopia Marketing Plan | 2

CONTENTS

1. Executive Summary 3

2. Situation Analysis 5

3. Segmentation and Target Marketing 12

6. Marketing Mix Strategies 18

7. Budget 28

8. Implementation Plan 30

9. References 35

Appendices 1: Product Checklist 37

Appendices 2: Observations of Market 39

Appendices D: Stall Set Up 43


1. Executive Summary New Breed is a prestige proprietor of QUT campus guides that provide students with exclusive, insider

information about the best coffee, snacks, events and hide outs QUT has to offer. Their guide book, The

Utensils of QUT, differentiates itself by “doing it different” to your usual culturally mainstream guides.

With a passion for crafting a unique consumer experience, New Breed revolutionises a simple book into a

complete brand experience through its use of vivid surreal still life images, bold text and design. Each book

is lovingly created, using only the highest quality material, professional style and environmentally friendly

packaging.

The Utensils of QUT was formed on the basis of a highly creative team who personally wanted to “do it

(campus life) different”. Upon extensive research, the company found 182 QUTopian’s has need for

exclusive campus information that combines originality and style all in one neat little package, New Breed

found it their duty to fulfill this need. Based on the psychographic target markets of the Young Optimists

and Socially Aware, New Breed focusses on providing new and exclusive information in a manner that is

outside of the cultural mainstream, in a way that captivates this demographic. Packaged in a niche designed

sleeve creates a sense of modernism for the consumer and is differentiated by a series of value add

strategies such as free bonus coffee coupons at QUT cafes and competitions.

In view of the political/ legal, environmental, sociocultural and technological factors, New Breed

investigated internal strengths and weaknesses, and external opportunities and threats and discovered there

is low competition for this product with 1 direct competitor 2 indirect, along with a relatively untapped

market space. New Breed’s marketing plan illustrates strategies to combat existing threats through robust

promotional activities and value-add strategies. Additionally the company will leverage its strengths

through product innovation and employee experience to effectively monopolise the market.

Using SMART objectives based on market share, sales and customer loyalty, New Breed focuses on a

premium positioning strategy setting their product price at Q$50/unit. Based on this pricing, it is calculated

a break-even point of 36 units, with an estimated sales forecast of 109 units, and estimated revenue of

Q$5450.

In order to achieve the strategic direction of the company, New Breed has created communication synergies

in attempt to influence target market behavior. This includes broadcasting two key messages, (1) “Do it

Different” and (2) “Remember The Utensils of QUT” on a one-to-many basis. The stall positioning is

advantageous with two sides of foot traffic, a strategized distribution plan and highly engaging stall plan to


further promote the product on market days. Based on the estimated projections made by the marketing

team, New Breed will effectively monoplise the market and achieve revenue goals.


2. Situation Analysis

2.1 The Market

QUTopia has a population of 276 students, 265 of which were sampled. The mean age of students was

20 years old, between a range of 18-45 years old. The mean disposable income of QUTopian’s is

Q$262.12, and the dominant psychographics of the market are Young Optimists 55.63%, Socially

Aware 10.15% and Something Better 10.52%. Young Optimist, the dominating psychographic are

under the age of 25, suggesting that 55.63% of the market share are conscious of their image

projection. They have the mind-set of wanting to experience all life has to offer and are willing to try

new things (Roy Morgan Research, 2012).

2.11 Market Need

The results highlighted Young Optimists and Socially Aware as the two dominating psychographics,

presenting a unique avenue and potential advantage for businesses. Tapping into current trends

associated with these segments will be vital to the product development process and execution;

therefore New Breed will target both segments. Roy Morgan Value Segments (2012) describes these

segments as innovative, information seekers; The Utensils of QUT fulfills this need by offering

exclusive insider information.

Research in figure 1 depicts the Information and Media Telecommunication industry is a niche market

with definite potential, it is small only accommodating a few businesses each year. By creating a

product with tangible value, alongside having low direct competition can effectively monopolise the

market.


Figure 1: QUTopia Information Media and Telecommunications Industry Value


2.12 Marco-environment – PEST Analysis

Figure 2: Implications for the product based on environmental trends

Environment Trend/issues Implications for our product

Political - MACRO

- Australian Competition and

Consumer Commission has outlined

guidelines which business and

consumers must follow regarding laws

and rights (2015).

- - Currently the Queensland

government is fairly unstable

(Remeikis 2015)

- - Can not play music that is

copyrighted

- - ACCC guidelines must be followed,

ensuring New Breed follows all consumer

guarantees

- - May be fined and infringements in place

if the rules and regulations are not fully

followed

- - When Government is unstable people are

less likely to purchase luxury items such

as the New Breed guide ()

- - Music will need to be sourced from IP

free sources or karaoke machines

MICRO

- - QUTopian laws must be abided

otherwise consequences may apply

(copyright of stores information,

playing music too loud ect)

Economic MACRO

- ACCC indicates all prices must

include GST (2015)

- Consumer confidence could be

increasing

- Product must include a GST inclusive

price

- Customers need to get value for money,

something tangible and memorable.

- In QUTopia with the high disposable

income, people are more likely to

spend more money on products

MI MICRO

- QUTopian dollars are not of a real

value neither are they exchangeable.

- Level of disposable income in

QUTopia is high and products are sold

at a high price point


Socio-cultural MACRO

- More people becoming health/

environmentally conscious

(Gagliardi 2015)

- This new health trend means people will

be more inclined to purchase our

product and find out ho they can

maintain their lifestyle at university. In

addition to this, the fact that our guide

is printed on recycled paper will be a

positive in their minds

Technology MACRO

- - Social Media is becoming a popular

communication platform (Sensis 2015)

- - Many businesses use social media for

advertising (Queensland Government

2015)

- Less people buying physical

publications and instead opting for

technological options instead (Stynes

2014)

- - In today’s social media focused society it

is quite easy to connect with consumers

- - The decrease in purchases of physical

publications means that some people may

not buy this product because they don’t

want the inconvenience of carrying it

around. In the future, to address this

problem New Breed should consider

making an app or virtual version of the

guide.

- - Due to the fact that most QUTopia

promotion occurs on social media this

means two things for New Breed

1. That we need to have competitive

advertising that will stand out fro

other businesses

2. More opportunity to reach other

QUTopian citizens because all are on

the same media platform.

- - As New Breeds stall has no power, other

alternatives will need to be considered

such as battery operated appliances such

as speakers and lights.

MICRO

- - Most QUTopian businesses use

social media for promotion

- - New Breed stall has no power

2.2 The Company

2.21 Mission Statement

The Utensils of QUT is a curated guide that optimises student life on campus. We aim to connect

students with the top food, drinks, events and hides outs QUT has to offer. We make recommendations

students’ trust and provide a sense of inspiration. We differentiate ourselves by offering exclusive

insider information in a creative and eccentric way to get everyone through their university day.


2.22 Marketing Team

Figure 3: Meet the Team

Name Role Favourite insider information…

Sophie James

Marketing manager If I’m ever feeling gloomy, the

P block rooftop is a place where

I can relax and soak up some

vitamin D!

Chloe Livock

Product manager Best coffee ever at The

BookShop, Campos is so good,

and they have Bonsoy!

Brooke Moore

Promotions manager You won’t believe

Karla Gumley Pricing manager Always in need of a sweet pick

me up, I cannot go past Mean

Beanz nutella lattes!

2.23 SWOT Analysis

Figure 4 highlights product internal strengths and weaknesses, along with external threats and

opportunities. Lack of business success in this industry was recorded the most unfavorable weakness.

This can be overcome using comprehensive promotions and distribution strategies to create brand

awareness; this is promising due to the absence of direct competition in the industry.

Figure 4: Internal Strengths and Weaknesses of New Breed


Factor Location Types of Factors

Internal Factor Strengths Weaknesses

Team - - Professional and dynamic group of students

motivated with strong work ethic

- - Organised with weekly meetings and

understanding of topic and concept

- - Previous experience in marketing and

promotions

- - Previous graphic design and branding

experience

- Only 4 team members, crucial be organised

with the distributions managers role and make

sure everyone stays on top of their own

- If one student is unable to make the market

day, possible drop in team moral

- As no team member has taken part in a

market day such as QUTopia there is a lack of

knowledge and understanding to the most

efficient operations

Product - Premium exclusive for QUTopia market day

- Costumed designed

- No direct publication competitor

- Tangle product- a memory and one to keep

- Sustainability printed on recyclable paper

- First time development means there is room

for error eg-printing difficulties

- Not printing enough copies for the day

- Need to advertise the vouchers- highlight the

value that is associated

- Estimations for the project sales forecast

mean that a certain number will be made and

not met

Figure 5: External Opportunities and Threats of New Breed

External Factor Opportunities Threats

Consumer - Predominately

- Large target segment: hold a great interest

in the getting ‘the best’

- Seeking something that makes them look

and feel cool-making a statement

- Utilising unique imagery, and store set up-

the guide is just part of the overall brand

identity

- Premium product pricing may deter

- Potential loss of customer as other

competitors are selling book type items

- May not want to carry around the book

while at the market

Competition - Not one direct competitor- product being a

guide

- Unique logo and imagery attention

grabbing

- Stands out and makes a difference

amongst other traditional food retailing

- Engaging design that creates curiosity and

a stand out brand identity

- Attention grabbing and curious social

media and promotions that create

distinction of the brand and association

with customers

- Ability to create B2B with other

aesthetically QUTopia brands

- More attention grabbing

- More added value (stationary, pens and

books)

- Better packaging

- Pricing positions of competitors maybe be

less than that of ours

2.3 Competition


The product is competing within the J5412 Magazine and Other Periodical Publishing industry. The

competitor profiling research established one direct competitor and two indirect, as outlined in Figure 6

and 7. To effectively contest market-space, and create a brand and product that is memorable, New

Breed has developed key points of marketing difference, outlined in section 6.4. A selective

combination of both pull and push strategies will be implemented to differentiate from competitors

(Noble & Mokwa, 1999).

Figure 6: QUTopia Map with Competitor Stall Locations

Figure 7: New Breed Competitors

Competitor 1

Fits’n’Giggles

Competitor 2

Save my GPA

Competitor 3

Squeeze

Competitor Direct – same industry Indirect – similar target Indirect – stall location


market

Target Market The health orientated

student: Nike wearing

The cautious yet cool

nerd

Healthy environmentally

aware juice drinker

Product Week-to-a page printer

calendar

Pack of supply and

products to get through

the uni day

Fresh juices

Price Q$45-50 Q$45-50 Q$30-40

Place Stall 9 Stall 49 Stall 54

Promotion Facebook, video

advertisements, posters

Facebook, video


Facebook, video


Potential Competitive

Barriers

Shopper may not want to

carry around another form

of booklet

We are in close

proximity- people may

bypass us and continue

on

We are directly next

door- people may bypass

us and continue on

Potential strengths &

weaknesses of

competitors

Calendar doesn’t offer

much more than its

intended purpose. Ours has

multiple with benefits for

different real life stores

Shoppers may feel the

has more added value

and larger tangible

benefits given on the day

Shoppers may be more

attracted and the need

for a eatable item would

a booklet on the day

Our likely response

Attack or Approach

ATTACK

Create a stronger product

than competitor by offering

more value incentives

through providing a full

brand experience.

Create value product for

our guide; make the images

and the overall look and

feel of the booklet more

attractive to the target

market.

Having the option to win a

framed art prize pack.

Additionally having

branded packaging for the

book highlights the brand

identity and ensures a

stronger affiliation and

personality.

APPROACH

Engaging in business to

business can be

beneficial to both parties.

The Utensils of QUT

could be included with

their product.

This will provide double

the exposure for New

Breed attracting more

potential customers.

Consequently our market

share will increase

through brand

awareness.

APPROACH

Squeeze is the store

directly next to New

Breed. New breed could

approach Squeeze and

ask if they could sell the

Utensils of QUT at the

store and we could

feature their product.

This will further attract

more customers and

brand awareness of New

Breed.

3. Segmentation and Target Marketing


3.1 Segmentation

New Breed has identified three potential QUTopian market segments that would most likely purchase

our product. The three segments include the Social Seeker, the Break Craver and the Information

Seeker. The descriptions of each of these segments is depicted below in Figure 8. All psychographic

analysis below is based around Roy Morgan Research (2012) research on value segments.

Figure 8: Segmentation Analysis

Segment 1 name:

Social Seeker’s

Segment 2 name:

Break Craver’s

Segment 3 name:

Information Seeker’s

Geographical

description

The geographical location

of Social Seeker’s is

QUTopia, Brisbane,

Australia.

The geographical location

of Break Craver’s is

QUTopia, Brisbane,

Australia.

The geographical location of

Information Seeker’s is

QUTopia, Brisbane, Australia.

Demographic

description

Social Seekers are young

singles of both genders in

the age bracket of 13-35.

Break Cravers are students

aged 18-26 that have an

average wage (Q$285).

Information seekers earn in the

highest income bracket and are

most likely marketing managers.

Psychographic

description

Social seekers are usually

Young Optimists as they are

style and image conscious

and always seeking

improvement.

Break Craver’s are likely to

be in the Something Better

value segment as they look

for quality in products and

often want only the best.

Information Seekers are in the

Roy Morgan psychographic

segment of Socially Aware

individuals. This is mainly due to

the fact that they are innovators.

Information seekers can also be

from the Young Optimists

segment because like Socially

Aware individuals they are

innovative and enjoy trying new

things.

Behavioural

description

Social Seeker’s often follow

the latest trends and enjoy

compliments from others.

They enjoy all activities that

are with others where they

can express themselves in a

social situation. They are

most likely extroverted and

enjoy nights out and prefer

face to face communication

over virtual chat.

Break Craver’s are

introverted. They like to

have time to themselves for

thought and relaxation and

enjoy going to movies,

events and cafes alone. The

fact that they are alone

during breaks mean they

have the flexibility to visit

places they want and will

go out of their way to find

the best alternative

available to them whether

that be food, coffee or

study areas. These

individuals like to make the

most of their uni breaks.

Information Seeker’s enjoy

learning new things and can often

be found with a book in hand.

They like to question social

norms and not follow the crowd

but instead discover their own

path.

3.2 Target Market

Figure 9: Segmentation Evaluation

Social Seeker’s Break Craver’s Information

Seeker’s


Are members of the segment

similar to each other, but

different from other

segments?

YES YES YES

Can marketers measure the

segment? YES YES YES

Is the segment large enough to

be profitable? YES

NO [according to the

census survey, this

value segment is

quite small among

QUTopian’s (10%)]

YES

Can marketing

communications reach the

segment?

YES YES YES

Can the marketer serve the

segment’s needs?

NO (they are always

looking for something

more)

NO (they are always

looking for

something better)

YES

New Breed’s chosen target market is Information Seekers. Based on the 5 point evaluation criteria, this

segment has the most potential for our business. Figure 9 outlines how Information Seekers fill more

requirements than the other two segments. Due to the fact that the primary goal of Information Seekers

is to try and learn new things, our product, satisfies this need. This primary goal differentiates them

from other segments.

Combining the two value segments means that this market is large enough to be profitable. By

marketing the guide to appear eccentric and insightful the target market will see value in its

uniqueness. Purchasing this product will satisfy Information Seekers needs as it will provide them with

new, exclusive information about QUT thus quenching their pursuit of knowledge and innovation. In

summary, New Breed’s target market are high earning innovators that enjoy information seeking.

4. Market Size, Demand and Potential Based on the QUTopia population (section 2) 55.63% were Young Optimists and 10.15% were

Socially Aware. Since our target market encompasses both these segments, our market potential is

65.78% of the total population (a), which is equal to 182 people (b). It is assumed because the

product is not disposable or edible, customers will generally only buy one copy (c). Upon profiling

competitors it was found New Breed had one direct competitor. From this research, New Breed


hopes to gain 60% market share thus dominating the market over the other business competitor (d).

New Breed’s sale projection is calculated by multiplying our estimated market share, product

frequency and target market which is equal to about 109 people.

According to the QUTopian Business Performance Report this J5411 Newspaper Publishing

industry is relatively untouched with one recent business profitability low (-11.34%). This

represents high risk however New Breed also see this as a unique opportunity to effectively

monopolize this market and securing their position for the 2nd market day.

Figure 10: Calculation of Market Size, Demand and Potential

Size of the total QUTopia market: 276

Market potential (a): 65.78%

Target Market (b): = X% of (a) 0.6578 x 276 =181.5528 ≈182

Product frequency per person (c): 1

Estimated market share from your research (d): 60%

Sales projection: (b) x (c) x (d) 182 x 1 x 0.6 = 109.2 ≈109


5. Marketing Objectives and Metrics New Breed analysed their current competitors as outlined in 2.3, as well as reviewing previous

competitive QUTopian businesses profits and performances. By considering competitors’ products,

missions and marketing strategies, financial and marketing objectives have been set.

Financial Objectives:

1. To make a Profit of approximately Q$3000 over the period of both market days. This

objective was set by calculating the break-even point for New Breed, as well as comparing

profitability to previous QUTopian businesses by including incentives. This profit is set to

achieve higher profitability than the average for the magazine and periodical publishing

industry. Estimated revenue and profitability was to ensure this objective is achievable by the

end of the second market day.

2. Achieve a minimum of 100 sales of our Guides for both market days. The attainability is

indicated at a sale price of Q$50 each, generating revenue of Q$5450, as outlined in section 4

and calculated based on market share and break-even analysis.

Marketing Objectives:

1. To gain more than 60% market share of the Magazine and Periodical Publishing industry by

the end of market day 2 in QUTopia. This objective is based off QUTopia’s previous

businesses, where the industry has been the minority and allowing companies to capture large

market shares on average. The combined market percentage of Young Optimist and Socially

Aware aims to be higher in market share than direct competitor’s Fits ‘n’ Giggles. As

calculated in section 4 and the profit and loss report, 60% market share is attainable and

realistic for New Breed.

2. Achieve 30% of customer loyalty rate of returning customers to purchase from market day 1

to market day 2. While it is assumed most customers will only purchase once, as our guide

varies across both market days and will include value offers, it is believed that discounts and

incentives for returning customers will achieve at least 30% customer loyalty and customers

returning to purchase on market day 2. This will be with exception of 32 customers on both

market days as calculated by:


Target market x estimated market share x loyalty rate estimation

182 x 0.6 (60%) x 0.3 (30%)

= ~32 customers.

Figure 11: Marketing Objectives and Metrics

Objectives Metric How the data will be

collected

Metrics: How it

will be measured

Financial Objective -

To make a Profit of

approximately Q$3000

over the period of both

market days.

Profit Number of total sales and costs

Calculated from the break-even

analysis in section 4. Set price at a

premiumQ$50 due to limited stock

to still gain high profit as well as

keeping the costs to a minimum.

Total sales minus

costs from both

market days

Financial Objective -

Achieve a minimum of

100 sales of our

Guides for both

Market Days.

Sales With use of stall design, valued

offers and promotion, set at a Sale

Price of Q$50 each, this would see

us generating revenue of Q$5450, as

discussed in section 4.0 and is

calculated based on market share

and break-even analysis, indicating

its attainability.

Total number of

guides sold for both

market days.

Marketing Objective -

To gain more than

60% market share of

the Magazine and

Other Periodical

Publishing industry by

the end of market day

2 in Qutopia.

Market Share Being one of only two Magazine and

Periodical Publishing industry we

can sell at premium pricing

calculated in section 6.2 with

incentives offered allowing

attraction of more customers. By the

end of Market Day, The Utensils of

QUT will include both QUTopian

businesses and leaving the customers

with QUT real business and events

to attract more purchases.

Comparing the market

share with competitors

and the % of sales in

the Magazine and

Periodical Publishing

industry to New

Breed’s sales and

determining after

market day 2.

Marketing Objective -

Achieve 30% of

customer loyalty rate

of returning customers

to purchase from

market day 1 to market

day 2.

Customer

Loyalty

As an incentive for customers to get

active on New Breed’s

Facebook/Instagram account by

allowing the customers to receive a

discount once returned on Market

Day 2 with proof of purchase with

loyalty discount card. As well as

offering incentives for return for

purchase by using Instagram

snapshot using the corresponding

hashtag and chance to win draws and

give aways.

Number of people

collecting their

discount on MD2

from post on MD1 /

Total number of posts

from MD1. E.g. 10/20

= 50% loyalty.


6. Marketing Mix Strategies

6.1 Product Strategies

The product is a curated guide providing students “insider” information about the best coffee, snacks,

events and secret hide outs QUT campuses have to offer, in an eccentric and creative style. The

product tailors to the target markets need for information, individualism and fashion through its

integration of information, design and language that is outside of the cultural mainstream.

Opting for a premium product New Breed intends to use a range of strategies to achieve this perception

through the use of high quality product materials and images, bold and contemporary language,

professional and clean design and branded packaging.

Being an unsought product in the QUTopian market represents high risk however this can be mitigated

through applying a robust promotion strategy; creating a strong awareness prior to market day 1, and

captivating stall design. Additionally the introduction our new product into the market could be

advantageous since the target market enjoy trying new things (Roy Morgan Research 2012).

Figure 12: Utensils of QUT Product Strategies

Product Design

Size 125mm x 150mm (pocket size) – this pocket size guide provides convenience as will easily slip into a pocket or handbag.

Simple, clean design to create perception of a superior range and ties in with brand image. Use of whitespace enhances clients reading experience and allows a connection with brand (Grewal, 2015, 240).

Large bold typography ensures the order in which the customers will read the page (largest grabs attention first).

Popping colours, including red, to grab attention.

Provoking almost rebellious, contemporary images and absurd humor will be used to attract the attention of our target market that are open to the “unusual”, and not following the social norms (Roy Morgan Research 2012).


Use of trending surreal still life images (WGSN Create Tomorrow, 2015)

Product Logo

Red is a primary colour which evokes the most response among people (Gremillion, 2015).

Do it Different

Product Slogan

The punchy slogan “Do it Different” alludes to our

idiosyncratic brand persona in which the target market’s

need for individualism will identify with. Additionally using

this strategy helps cut through noise from other Utopian

businesses, thus creating a memorable image in the

consumers’ minds (Grewal, 2015, 246).

Packaging

Clear plastic to allow transparency of book.

Niche and appealing style to capture target market.

Additional Features

Product coupons from various QUT cafes, such as “2 for

1” drink deals to create additional value for client, thus

Brand Name


Simple, clean design.

Using a contemporary language in our brand name appeals to the age range of our target market (QUTopia source), additionally it describes a characteristic of our target market (New Breed = New Generation), allowing who will easily identify.

Figure 13: Raw supplies required for production

Supplies Source/ Supplier

White Paper Office Works

Printer New Breed Asset

Plastic Sleeves Office Works

Binding JP Printing

The target market want to be unique, informed and they want experience the new and different (Roy

Morgan Research, 2012), that is why they will choose The Utensils of QUT to guide their campus days

as the product reflects their own characteristics.

Figure 14: New Breed Positioning Statement

Positioning Statement

To the Information Seekers of QUT who are image and style conscious and appreciate

new, innovative products, New Breed is the brand of Guides that is bursting with

invaluable information to optimise student’s time on campus. Our guides offer insider

information about QUT campus food, drink, events and secret hide outs, because we

believe there is a New Breed of student on campus, one who demands quality information,

exclusivity and style all in one neat little package.


Figure 15: Reasons for consumer purchase based on previous data from QUTopia Bureau of

Statistics

Figure 16: Positioning Strategies based on data from the QUTopia Bureau of Statistics

Positioning Strategy Implementation/ Reasoning

Finding the balance between cost and quality Consumers enjoy a product that is good quality but

that doesn’t cost them more than they can afford, or

more than is aligned with the market (Bearden&

Etzel 1982, 187)

Focusing on 58% of the market that prefers good

quality product

According to figure 13, consumers mostly purchase

products that are of good quality, thus in order to

target the majority of the market, incorporating high

quality products that do not sacrifice superiority for

cost savings is vital.

Focusing on satisfying consumers’ needs in order to

obtain profit and good market share on the day

Focusing on the largest segment of the market

based on purchasing needs as mentioned above

generates 58% of sales made based on the ‘Other

Store Based Retailing’ sector. New Breed must

focus on fulfilling these needs, if done correctly, the

company will experience success in meeting their

estimated sales forecast.


6.2 Pricing Strategies

Since the product is high quality, New Breed opts for a premium pricing strategy. High perceptions of

value will be generated in our product through value add schemes and comprehensive communication

and distribution strategies.

Upon viewing the QUTopian census data it appears the target market is middle to high income earners

who can afford the product. Competition is low and the target market enjoys trying new products thus

are willing to make purchases on niche products. All factors indicate low price sensitivity.

New Breed compares pricing to G4279 Other Store-Based Retailing. This data showed an average

price of Q$40.00, with a range from Q$20-100. Based on this, and factors summarised earlier, New

Breed will price their product at Q$50/unit. Taking fixed costs and variable costs into consideration,

the break-oven analysis using this price point suggests New Breed will break even at 44 units, with

total revenue of Q$5450 based on expected sales.

Figure 17: Breakeven Analysis Summary


Figure 18: Breakeven Point

6.3 Placement Strategies

New Breed expects a medium to high flow of consumer traffic on market day due to the positioning on

the main walkway from S to C block and entrance way from library. As shown in figure 6, New Breed

is not within close proximity to its direct competitor, enhancing its visibility. Appendix C shows the

stall will have two foot traffic areas; this is advantageous for creating our open-themed 2 sided stall.

The aim is to evoke curiosity, and to engage client’s five senses for a full brand experience.

The consumer has an opportunity to physically touch the product and explore the competitions and

social media campaign; this creates a sense of involvement and brand recognition for clients

(Goldsmith & Goldsmith 2012, 11). Additionally roaming promoters will encourage consumers to

come and discover our product.

As noted in appendix B a well-planned distribution strategy will ensure customers are serviced

effectively. Two employees will attend the inside of the stall fulfilling orders as they come in. The

BREAK EVEN POINT: 44 UNITS


remaining two employees will attend the front of stall and encourage consumers to engage with New

Breed products. This will ensure clients are serviced and stall over-crowding does not occur and

become a safety hazard.

Figure 19: Placement Strategy

FEATURES COMMENTS

Location Stall 53

Lighting Light above our

Battery operated lights featured creatively around stall

Potential

neighbours

Stall 45 = Maison des Macaroons sells premium Macaroons

Stall 54 = Squeeze sells 3 different types of fresh juices

Traffic Flow

Traffic will be surrounding our stall from two sides. The stall is positioned along the main

walkway from S to C block and is the first on the left when entering from the library

walkway. Therefore traffic flow will be medium to high.

Floor coverings The floor will be covered in the carpet which is currently in the building.

Access to a wall There is currently no access to a wall

Posts 4 Posts to hold up the stall.

Sound Background music will be played through an iPod doc speaker which will be on during

service.

Impediments

Potential concerns of sizing should other stalls not adhere to size restrictions, this could

impact our space and push New Breed onto the consumer walkways. Concerns if

neighboring music is loud, New Breed relies heavily on auditory senses including sound

to communicate a brand experience, this could harm brand and also draw attention away.


6.4 Promotion Strategies

New Breed's strategy will be based on communicating the products value to the target segment. To

influence consumer behavior New Breed must ensure an integrated communications strategy

communicates the brand image and message consistently and powerfully (Chitty et al. 2012, 6).

Another source of marketing will be done via strategic relationships with companies who sell products

we advertise in our guide. The strategic relationship with be mutually beneficial where both

organizations will develop visibility for each other.

Due to market risks New Breed will adopt a slim promotions budget of $Q250; this will enable initial

awareness activities, followed by a robust social media strategy, involving one-to-many marketing

communication, as outlined in Figure 20 below.

New Breed aims to use all elements of the communications mix to ensure the Young Optimists and

Socially Aware can identify with the brand. This use of the communications mix to broadcast two key

messages: “Do it Different” and “Remember The Utensils of QUT” will ensure prospective

customers will choose New Breed by providing more value than other stalls on market day.


Figure 20: Promotion Strategies

KEY MESSAGE COMMUNICATIONS

MIX ELEMENT

PROMOTIONAL TACTICS

We want to help promote

your business to QUT

students everywhere.

B2B Marketing. Flyer, letter

and sales script.

Introduce New Breed and Utensils of QUT to real

QUT businesses to promote their business in our

book in return for product discounts/ vouchers we

can offer our clients.

Introductory

advertisement. The

Utensils of QUT. Do it

Different.

Advertising. 2 x Poster

advertisement in lecture

($250).

Introduce New Breed to the market. Large bold

typography and provocative, outlandish images to

draw in audience attention and curiosity. Display

brand symbol and slogan.

1x The Utensils of QUT.

Do it Different.

2 x Informational,

explaining some consumer

sales strategies for both

market days.

2x Poster advertisement on

Website, Facebook,

Instagram (Free).

1 x tie-in with poster advertisement.

1x informational advertisements closer to market

day 1 – (explains loyalty reward and bonuses).

1x informational advertisements closer to market

day 2 – (explains loyalty reward and bonuses).

Buy this product now;

consumer gets this (Value

increase).

Consumer sales promotion. Surprise discounts off coffee at QUT cafes.

Vouchers given with every purchase at the stall on

market day.

Share this product for the

chance to win. Social

Media Promotional

Campaign.

Social Media and Word of

Mouth Promotion.

On both Market Day 1 and 2, consumers can take

a picture of them and share with the hashtags

#newbreedqut #doitdifferentqut to go in the draw

to win a New Breed framed art prize pack. The

person with the most likes on each day wins.


consumer has chance to

get this prize today (Value

increase).

Consumer sales promotion. Draw to win a New Breed framed artwork prize

pack on each market day.


consumer gets reward in

future (Value increase).

Consumer sales promotion. Loyalty Reward Card for market day 2, an amount

50% off next purchase on market day 2 if

provided their details on market day 1.

Remember New Breed for

market day 2. Get free

New Breed framed art

prize pack and use the

loyalty card to enhance

your value.

Data-driven marketing. Providing email details and name allows for entry

into New Breed framed artwork draw, loyalty card

and direct marketing through email supplied for

market day 2.

Remember New Breed for

market day 2. Enjoy more

competitions and

giveaways, and use the

loyalty card with New

Breed at market day 2.

Online marketing

communication.

Details provided at point of sale on market day 1

allow direct marketing through email before

market day 2.


7. Budget The projected sales revenue is based on previous QUTopia Census and Business Profiles in section 4.

The projected sales revenue for New Breed is calculated by multiplying the number of sales by the

price per unit, this equates to Q$5450 (refer to figure 21).

FIGURE 21: Budget and Projected Sales Revenue

Size of the total QUTopia market: 276

Market potential (a): 65.78%

Target Market (b): = X% of (a) 0.6578 x 276 =181.5528 ≈182

Product frequency per person (c): 1

Estimated market share from your research (d): 60%

Sales projection: (b) x (c) x (d) 182 x 1 x 0.6 = 109.2 ≈109

Projected Sales Revenue:

(sales x price/unit)

109 x 50 = Q$5450

FIGURE 22: Sales and Production Report


Figure 23: Profit and Loss Statement


8. Implementation Plan Figure 24: Implementation Plan

Pre-Market Day (29/07/15 - 25/09/15)

Action Team member responsible Deadline

complete worksheet 1 (each member does one

section)

All 29/07/15

group meeting

to finalise worksheet 1

All 29/07/15

Brainstorm product ideas individually (looking at

past results/products)

All 05/08/15

complete worksheet 2 (each member does one

section)

All 05/08/15

group meeting


All 05/08/15

complete census All 07/08/15

Purchase Stall Promotions Manager (Brooke) 12/08/15

register business Marketing Manager (Sophie) 14/08/15

complete worksheet 3

(each member does one section)

All 19/08/15

group meeting


All 19/08/15

Register for QUTopia TV All [group created by

Marketing Manager (Sophie)]

19/08/15

Brand email created Product Manager (Chloe) 21/08/15

Create flyer to give to possible partners Product Manager (Chloe) 21/08/15

complete worksheet 4

(each member does one section)

All 26/08/15

group meeting


All 26/08/15

Social Media accounts created Promotions Manager (Brooke) 31/08/15

Hand out flyers to possible partners All 26/08/15 -


04/09/15

Edit worksheets and create Marketing Plan All 30/08/15

Pricing of product decided based on research Pricing Manager (Karla) 30/08/15

Group Meeting

check deadlines

decide on uniforms

discuss social media marketing tactics

design stall

All 02/09/15

Hand in Marketing Plan (Assignment Minder and

online)

Marketing Manager (Sophie) 06/09/15

Product template created (style options for guide

presented to team and design chosen)

Product Manager (Chloe) 09/09/15

Each member writes their own section of guide Sophie - Secret Spots

Brooke - Events

Karla - Coffee

Chloe - Snack

09/09/15

Guide is assembled Product Manager (Chloe) 11/09/15

Final check of Guide Promotions Manager (Brooke) 12/09/15

Uniforms are made

t shirts collected

logo’s ironed on

Marketing Manager (Sophie) 16/09/15

Guide is Printed Product Manager (Chloe) 16/09/15 -

23/09/15

Music playlist created All 23/09/15

Stall decorations bought/made and stall items (table

etc) organised

All 23/09/15


At Market Day 1 (26/09/15)


Members arrive at QUT for a team meeting All 23/09/15

8:15am

Z Block opens to business for set up - 23/09/15

8:30am

Set up stall

walls, table, stands, till

Marketing Manager and Pricing

manager (Sophie and Karla)

23/09/15

9:30am

Set up promotional materials

music, decorations

Product Manager and Promotions

Manager (Chloe and Brooke)

23/09/15

9:30am

Product sales/distribution at stall (including

keeping record of sales)



23/09/15 9.30 –

10.45am

Promotion/customer engagement

walking around convincing people to

buy our product



23/09/15 9.30 –

10.45am

Purchase products using wage (2 at a time so

that 2 are always at the New Breed stall)

Chloe and Brooke

Sophie and Karla

23/09/15 9:50-

10:10am

23/09/15 10:10-

10:30am

Post-Market day 1 / Pre-Market Day 2 (26/09/15-10/10/15)


Pack up stall All 23/09/15

11:15am

Complete stock count Product Manager (Chloe) 23/09/15

11:15am

Cash count Pricing Manager (Karla) 23/09/15

11:15am

Debrief with Tutor All 23/09/15

11:30am

Team Debrief

discuss changes that need to be made before

2nd market day

Organised by: Marketing

Manager (Sophie)

Attended by: All

24/09/15


Market Day 2 (10/10/15)


Members arrive at QUT for a team meeting All 23/09/15

8:15am

Z Block opens to business for set up - 23/09/15

8:30am

Set up stall

walls, table, stands, till



23/09/15

9:30am


music, decorations



23/09/15

9:30am





23/09/15 9.30 –

10.45am



buy our product



23/09/15 9.30 –

10.45am



Chloe and Brooke

Sophie and Karla

23/09/15 9:50-

10:10am

23/09/15 10:10-

10:30am


music, decorations



23/09/15

9:30am





23/09/15 9.30 –

10.45am



buy our product



23/09/15 9.30 –

10.45am



Chloe and Brooke

23/09/15 9:50-

10:10am


Sophie and Karla

23/09/15 10:10-

10:30am

Post-Market Day 2 (10/10/15 - )


Pack up stall All 07/10/15

11:15am

Complete stock count Product Manager (Chloe) 07/10/15

11:15am

Cash count Pricing Manager (Karla) 07/10/15

11:15am

Debrief with Tutor All 07/10/15

11:30am

Team Debrief Organised by: Marketing

Manager (Sophie)

Attended by: All

08/10/15

Organise thank you letters to New Breed

partners/sponsors

Marketing Manager

(Sophie)

08/10/15

Individual Analysis/Reflection of Market Days

including report on financial success.


Manager (Sophie)

Completed by: All

12/10/15

Team discuss differences in analysis’, compare to

predictions and discuss future timeline.


Manager (Sophie)

Attended by: All

12/10/15

Delivery thank you letters to New Breed

partners/sponsors

Marketing Manager

(Sophie)

12/10/15


9. References Australian Consumer and Competition Commission. 2015. “Business”. Accessed September 3,

2015. https://www.accc.gov.au/business

Gagliardi, Nancy. 2015. “Consumers Want Healthy Foods--And Will Pay More For Them”.

Forbes Business. Accessed September 3, 2015.

http://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy- foods-and-

will-pay-more-for-them/

Morgan, Roy. 2012. “Roy Morgan Research: Value Segments”. Accessed September 2, 2015.

http://www.roymorgan.com/products/values-segments

Remeikis, Amy. 2015. “Queensland Election: LNP would rather lose than have hung

parliament”. Brisbane Times. Accessed September 3, 2015.

http://www.brisbanetimes.com.au/queensland/queensland-state-election- 2015/queensland-

election-lnp-would-rather-lose-than-have-hung-parliament- 20150111-12lzq9.html

Sensis. 2015. “Social Media Report, May 2015:How Australian people and businesses are using

social media”. Accessed September 3, 2015.

https://www.sensis.com.au/content/dam/sas/PDFdirectory/Sensis_Social_Media_Report_2015.

pdf

Stynes, Jess. 2014. “Print Magazine Sales Decline in 1st Half of 2014”. Wall Street Journal.

Accessed September 3, 2015. http://www.wsj.com/articles/print-magazine-sales- decline-in-

1st-half-of-2014-1407423959

Queensland Government. 2015. “Using social media to market your business: the basics”.

Business and Industry Portal. Accessed September 3, 2015.

https://www.business.qld.gov.au/business/running/marketing/online-marketing/social-media-

business

Gremillion, C. (2015). Colour combos. Retrieved July 28, 2015, from Colour blog:

http://www.colorcombos.com/color-red-article.html).

Grewal, D. a. (2015). Marketing/ Dhruv Grewal, Michael Levy, Shane Mathews, Paul Harrigan, Tania

Bucic. North Ryde: McGraw Hill Education.

https://www.accc.gov.au/business

http://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy-%09foods-and-will-pay-more-for-them/

http://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy-%09foods-and-will-pay-more-for-them/

http://www.roymorgan.com/products/values-segments

http://www.brisbanetimes.com.au/queensland/queensland-state-election-%092015/queensland-election-lnp-would-rather-lose-than-have-hung-parliament-%0920150111-12lzq9.html

http://www.brisbanetimes.com.au/queensland/queensland-state-election-%092015/queensland-election-lnp-would-rather-lose-than-have-hung-parliament-%0920150111-12lzq9.html

https://www.sensis.com.au/content/dam/sas/PDFdirectory/Sensis_Social_Media_Report_2015.pdf

https://www.sensis.com.au/content/dam/sas/PDFdirectory/Sensis_Social_Media_Report_2015.pdf

http://www.wsj.com/articles/print-magazine-sales-decline-in-1st-half-of-2014-1407423959

http://www.wsj.com/articles/print-magazine-sales-decline-in-1st-half-of-2014-1407423959

https://www.business.qld.gov.au/business/running/marketing/online-marketing/social-media-business

https://www.business.qld.gov.au/business/running/marketing/online-marketing/social-media-business


Solomon, M., R, R.-B., & J, P. (2013). Consumer Behaviour: Buying, having, being 3rd Edition.

Frenches Forest: Preason Australia Group Limited.

WGSN Create Tomorrow. (2015). Retrieved August 21, 2015, from WGSN / Fashion Trend:

http://www.wgsn.com/en/#fashion

Bearden, William and Michael Etzel. 1982. Journal of Consumer Research, Vol. 9, No. 2, pp. 183-194

Chitty, William, Nigel Barker Chitty, Michael Valos, and Terence A. Shimp. 2012. Integrated

Marketing Communications. 3rd ed. Victoria: Cengage Learning Australia.

Goldsmith, Ronald and Elizabeth B. Goldsmith. 2012. "Brand Personality and Brand Engagement",

American Journal of Management, vol. 12, no. 1, pp. 11.

http://www.wgsn.com/en/#fashion


Appendices 1: Product Checklist


Item Detail Your response

Is a food license required http://www.brisbane.qld.gov.au/laws-

permits/laws-permits-

businesses/food-business-

licences/starting-new-food-

business/market-food-stall.

No

Does your product have all

ingredients listed on a label

attached to the product

All ingredients listed in product No ingredients involved in

production

What are the dimensions of your

stall

Must not exceed 1.5m x 1.5m in

width and depth

Height 2m

Width 1.5m

Depth 1.5m

Will you be using electricity in

your stall

If so please state the equipment you

will be using

No electricity will be used, only

battery operated speakers playing

music

Are there any stall features that

require safety or mess precautions

Examples are;

- Boiling water/kettles

- Eskys (water condition)

- Spillages

- Power cords that require taping

down or holding behind

- No risk of spillage of liquid of

food at our stall

- As we will be using battery

operated music devices no risk of

long cords

- Potentially hanging large posters-

need to make sure they are safe ad

secure

http://www.brisbane.qld.gov.au/laws-permits/laws-permits-businesses/food-business-licences/starting-new-food-business/market-food-stall






Appendices B: Observations of Market


Location of market:

Eat St Markets, Macarthur Ave, Brisbane QLD 4007

Time, day and date visited:

6pm, Saturday 29th September, 2015.

Team members present:

Brooke Moore, Chloe Livock, Karla Gumley, Sophie James

Observations - Busy Stalls

What products were being sold?

Hot food products seemed to be the busiest stalls, especially exotic foods.

Who were the customers?

The customers mainly appeared to be adult men and women under 50 years old and few children

however the dominating age range was 18-35 years old. Many appeared to be couples.

How did they attract people’s attention?

Most of the busier stalls were brightly coloured, had a lot of atmosphere, had very enticing aromas,

good music and lighting and were run by people who clearly had a passion for their product; looking

happy and engaging customers by speaking in loud clear voices and verbally advertising the products.


How do they handle queues?

Queues were normally handled very well. Although the stalls were busy, the stall holders were well

prepared, having pre-prepared much of their product prior to service. This seemed to drastically reduce

wait time for consumers. There were usually one or two people serving customers at the counter and

the remaining in back area producing orders. Any orders that needed a little extra time were placed and

the consumer stood to the side to wait, allowing other customers to place and receive their orders

promptly, allowing for sales to take place promptly.

What consumer ‘need’ are they satisfying?

Most of the busiest stalls were satisfying consumer ‘hunger’. As hunger is a physiological need, it is

often attended to first. Obviously Eat Street is a food market therefore people go there to eat rather than

buy retail products. It was also 6pm (dinner time).

The retail stores seemed to have more “tyre kickers” people just looking and touching their product

than actually purchasing. We noticed in this case a business card would be handed out to the customer

in hope of further business in future.

Observations – Non-busy Stalls

What are their products?

The non-busy stalls generally sold less. Stalls such as flowers, books, artwork, candles and other

giftware were in less demand than the busier stalls.

How do staff respond when people walk past?

The staff of the non-busier stalls generally acknowledge potential customers, but do not go out of their

way to suggest products or be of any extra service. They mostly wait for the consumer to enquire,

come to make a purchase, or move onto the next stall.

Why do you think their stall is not busy?

The two main reason we feel that these stalls were not busy, was due to the product they were offering

and their lack of interaction with customers. As the potential consumers and general target market


consisted of men and women, particular couples who came to the market for dinner rather than

giftware. Furthermore, although the products were not as popular, the lack of purchasing consumers

could have potentially been linked also to the lack of interaction coming from the stall-holders;

generating no interest or call-to-action with their target market.

What could they do to improve sales?

In order to improve sales, these stalls should try to engage further with the customers. Making eye

contact, greeting consumers, offering advice or help with selections could all help to engage

consumers, they could also employ roaming marketers to attract consumers to their stall. Additionally,

offering free samples of products could be a great way to entice new customers to experience their

products. Furthermore, employing incentive strategies to encourage both new consumers and loyalty in

current consumers would likely heighten the number of consumers present on the day. This could be

done by implementing a loyalty discount upon return. Finally, giftware shops could look at re-locating

to a market that has consumers primarily looking for giftware product as opposed to food.


Appendices C: Stall Set Up

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