Customer analysis on equine industry and products
2.0 Rationale for a new product
3.0 Target Market
4.0 Rationale for Brand Position
5.0 Marketing Mix
Marketing strategy for a new product
Marketing a new product requires strategic planning and research into the target market. The equestrian market is vast in size and diversity and is often underestimated by businesses (Graham-Suggett, 1999: 31). Due to the range of disciplines and activities covered by this market, targeting just one group could lead to increased sales through word of mouth promotion or competition between sports. Creating a marketing strategy with respect to the product, price, place and promotion (McCarthy, 1960) should maximise sales, brand position and loyalty as well as encouraging repeat sales. It is important to highlight the quality and benefits of the product, as customers will feel more relaxed about a purchasing decision if the risk is reduced (Kalish, 1985: 1569).
2.0Rationale for a new product
The product idea is a trolley with multi-surface wheels used to transport saddles, bridles and tack such as bandages or boots. It is a modification of an existing trolley in circulation which only carries three saddles (Robinsons, 2009b). By attaching bridle hooks and a small basket it creates a more productive design as more equipment can be carried in one journey. The product fulfils a need for all horse owners and those involved in the tacking up process. It allows saddlery and tack to be easily and safely transported and stored. It eliminates health and safety issues of carrying heavy equipment and the risk of damage to equipment through dropping, falling or improper storage. Equipment can remain clean and dry as it elevated, not left on a damp yard or dirty stable floor.
3.0 Target market
The aim is to launch the product into the equine industry, an extremely large and varied market, its contribution to the wider economy is often ignored (Graham-Suggett, 1999: 31), therefore it is underappreciated and the launch of a new product could prove very profitable. As the industry is so fragmented and dispersed, there is a huge variety horse owners to target all connected by overlapping organisations and governing bodies (Graham-Suggett, 1999: 33). The trolley will be aimed at the average horse owner, of which there are an estimate 1.3 million in the UK (BETA, 2006: 15), but has the potential to be altered slightly to then be offered to professional riders, riding schools or the racing industry in the future.
It is estimated that there are 2,000 livery yards/riding schools, 2,000 breeders and 750 trainers of race horses (BETA, 2006: 15). 23 % of the population of the UK have some interest in the industry, with 11% directly involved either through the sports themselves or as spectators (Defra, 2004: 13). With around £4 billion total horse related expenditure in the UK each year, the equine industry is growing both in leisure and competition (BETA, 2006: 19). Similarly, £140 - £170 million was spent on saddlery and tack in 1999 (BETA, 1999: 21) a figure that is only likely to rise with changing fashions and increased interest in the sport. Similarly, the Henley Report (Defra, 2004) outlines key strategies to promote the equine industry both in the UK and international. Therefore, the industry is only likely to develop and grow in the future.
A strong market position will be held as there is a greater understanding of the customer’s needs as well as competing with a smaller number of rival brands. It would be uneconomical to launch the product in an undifferentiated market, as it has such as selective appeal (Armstrong & Kotler, 2009: 209 - 210).
4.0 Rationale for brand position
Branding is the way in which businesses add value and...