Term Project - Milestone 3
MBA 243 - Dr. Andrey Mikhailitchenko
May 9th, 2012
1) Marketing objectives:
When analyzing our target market in Australia our first approach is to look at and define the total number of homeowners due to the home design nature of our product. Home owners and those associated with the home building and designing industry are thus our target market as they are the group of customers we are aiming our marketing efforts toward in order to sell them our products and services. After researching statistical data on homeowners within the Australian market #, we will first target the nearly fourteen million homeowners in the population, while cross referencing the percentage of the population in which the level of expenditure on goods and services was significantly above the country’s average. This would lead to around four million people within Australia who would be potential customers of Belami #. This number represents family households with dependent and nondependent children that have an average weekly expenditure of $2,406 AUD. The age of this population is 45 to 60 and is mostly concentrated within major metropolitan areas such as Sydney, Brisbane and Melbourne. Belami also will also consider the total number of households that have broadband Internet connection, as we will be providing the majority of our sales and distribution over the Internet. After researching we found that about 50% of the population or 11.5 million have Internet connection. Of that 68% have already made a purchase of consumer goods over the Internet, which are about 7.8 million people. As part of our research, we have found that Australia’s online spending grew at a pace of 29% in 2011; accounting for roughly 5% of the country’s total spending that year. Economists expect online sales to steadily increase and become a major cornerstone of the retail market in coming years. Currently Australians mostly use online stores to find and trace the best prices, rather than as a primary shopping site. We believe this will change in the years to come, and like domestically there will be growth in the online stores and online spending. After looking at our target market, we believe that there are a large percentage of potential customers that could use our service and product. Our sales in 2012 is expected to be low since it will take time for our brand and website to get ranked for customers to find about us. Pricing will be an important strategic process, since research has indicated to us that our service model is different than that of the competition but some of the product will be generally similar to those of Australian brands. We also know that our cost of getting the product to the end customer will be higher than domestic customer. We will use multiple pricing methods as some brands we will be selling have products already in the market. The pricing model for that product will be market price and establishment of connections with local manufacturing firms. We will transfer over our current cost discounts received from our domestic sales to increase profit margin. The other pricing model we will use is the skimming model. This strategy will enable us to get a higher price over the top of the market price. We will use the skimming pricing model knowing that we will not be able to charge this high of price for the long term. This strategy is for products that cannot be found currently in Australia.
Belami can penetrate the market with its energy efficient lighting offerings and its wide selection of product. Considering that Belami is an ecommerce company, it allows it to penetrate the entire market of Australia. The part that we will have to work to overcome is the current competition that can cover in-house design support, fixtures that match the voltage standards of the market and the expense of allowing a customer to return or exchange a product. Looking at keyword research online,...
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