Introduction:

Marketing is one of the most essential processes in ensuring that clients have a positive experience when using a product and hence makes part of any business undertaking. Jamie and Megan have just discovered the huge potential that their vineyard could create given the experience and feedback they received from newspaper reporter. There are several suggestions that have been floated to support the business opportunity including setting up online retail arm to market the wine against other foreign champagne and also creating a vineyard tour. This will effectively allow the vineyard to serve as a tourist destination but also make wine for both local and foreign consumption. From the onset, there seems to be a long way before Jamie and Megan can make this dream a reality but they have to underscore the role of marketing in achieving this business transformation agenda. This paper will demonstrate the role of marketing planning in business including the key steps that will form part of my discussion with them.

Discussion:

Marketing plan is one of the most commonly used tool to illustrate the company’s marketing efforts and as such Jamie and Megan will need a strong marketing plan that outlines all the activities and processes they will follow to achieve their marketing objectives. A marketing plan contains four key areas that the marketing objectives must address. They include target customers, pricing and positioning strategy, Unique selling proposition and distribution plan (Lavinskey, 2013). All these four pillars will enable the customer to have the best experience in consuming a product.

Introduction to Marketing and Marketing Process:

Jamie and Megan have had a vineyard producing table wines for local consumption and small scale retailers within UK. But after a major discovery by the newspaper reporter. A business opportunity has been identified with a lot of options. This is an important step in business development and as such they have enough ground to conduct further studies in determining the viability of this business opportunity. The suggested plan is to expand the wine production and incorporate an online marketing through a website that will enable the products to reach global clients. The vineyard is also considered to be an important attraction and hence the need to establish vineyard tours to accommodate both local and foreign tourists. There is a strong business case in this opportunity and hence Jamie and Megan need a very comprehensive marketing plan to reach out to clients and to make a strong value proposition to the current and prospective clients (Hill & Jones,2009).

Marketing is the only way that the Jamie and Megan will convert this great business idea and create a product that will change this concept to a customer (Reid & Bojanic, 2009 p. 8).In this regard marketing entails the conversion of product concept into customer concept through variables such as marketing mix, marketing environment analysis, marketing management and planning and market segmentation. These variables are discussed in the next steps (Evans,2015).

Marketing audits:

Marketing audit is one of the most fundamental processes in marketing planning and refers to the processing assessing the external and internal factors that will affect the marketing strategy. It basically considers how the internal and external factors are likely to affect the marketing plans. The external factors relates to customers and their buying beviours,buying process, their perceptions about the brand and what value the customers derive from the product and how the firm provides it. Other external factors include competition in the target market and relative strength of the competitive environment, the cultural aspects of the business, demography, economic conditions and the political environment (Friesner, 2014). PESTLE analysis is one of the most commonly used tools for environmental audit especially when scanning the external environment. PESTLE stands for Political, Economic, Social cultural, and Technological and Environmental factors.

Political factors in this case have to do with the relative stability within the country and the location that allows Jamie and Megan to proceed with the business idea. It also have to do with the political situations created by the civil society with regards to setting up and wines business (Miles,2011). The other political considerations will be the issues around countries that produce Champagne such as France which the business was considering competing against. The economic conditions locally and in foreign countries will be keenly looked at as they determine the purchasing power. Economic conditions will also help in setting up pricing strategies for the vineyard tours business as well as the wine business (pestleanalysis.com).

Social cultural issues have a larger impact on consumption as such the vineyard tours will largely leverage on the cultural orientation depicted in the people visiting the sites. The wine business will also weigh much on the cultural representation it brings out. For instance the mention of French Champagne is associated with French culture and hence Jamie and Megan will have to create a cultural dimension in the business (pestleanalysis.com).

A lot of technology will be required in this business especially when setting up the online marketing platform. The Jamie and Megan needs to consider the level of technology to employ in this business and the kind of audience that they target with that technology. Environmental factors have become very critical in modern business and as such the vineyard tours possess critical environmental factors pollution and pressure on the vineyards. The processes involved in manufacturing the wines must be environmentally friendly. The above external factors will be critical in determining the marketing strategies adopted by the Jamie and Megan (pestleanalysis.com).

To further support the business people in setting up a comprehensive marketing plan, it will be important to scan through the internal business environment and as such the strengths and weaknesses should help Jamie and Megan in determining the possible opportunities for growth notwithstanding the risks they might face in the process (Entreprenaural-insights.com)

The business boosts of massive resources provided by the vineyards and this has been reinforced by the newspaper reporter who sees a lot of business opportunities in the vineyard. The possibility of creating both tourist attraction and wine business creates another big business opportunity. The ability to create online retail for wine will allow the business to reach many clients locally and abroad and hence the business will be so expansive. There are however possibilities of lack of capabilities to deal with the massive business opportunity especially when the vineyard tours is launched, it might attract more tourists and hence the business will need to acquire more land for expansion. The business opportunity will also require large sums of capital especially in technology and wine manufacturing. The business will also have to do with larger number of clients compared to the current ones who are mainly local. It’s therefore important to note that more resources will be required to create and implement a comprehensive marketing plan for this business (Luther,2011 p.23).

Market Segmentation:

Market segmentation is a powerful tool that allows the business to serve its target market better and offer them the best value. Market segmentation involves dividing the target market into smaller sets of consumers, businesses or geography. Market segmentation creates a group of clients, markets or businesses with common interests and perceived use value and hence the business will be able to propose the best offering for this group of clients (McDonald & Dunbar,2012 p.37-44). To enable the business carry out market segmentation, the five force model will be used:

Porters Five Force Model:

This is a very useful tool in analysing the competitiveness in the market and hence forms the basis for market segmentation. The Porters five force model analyses the five key competitive forces that affect the ability of the business to create a competitive advantage in the market. Jamie and Megan have been serving a small local market with its fine wines but the introduction of vineyard tours and the extension of its business to serve a large clientele creates a new challenge and hence the need for the business to look through the bigger picture. This can be demonstrated through the five model that will finally inform the segmentation strategy (Hill & Jones, 2007 p.45).

Bargaining Power of Buyers:

The tourism industry has a small scale but many players and hence the vineyard tours will have to compete with similar private initiatives and the conservancies created for tourists. This means that the customers who are mainly local tourists have higher bargaining power and the business cannot charge high. The wine business will be quite competitive given that the firm plans to attract foreign clients (Hanlon,2013)

Bargaining Power of Suppliers:

Jamie and Megan will be the key supplier of the wine and the tour services hence the supplier power will be minimal given that most of the supplies will be internally sourced. In this regard the business can easily use its internal supply chain to build competitive advantage and offer timely services to the clients (Hanlon,2013).

Threats of substitutes:

There has been a lot of pressure in the conventional tourism especially those involved in visiting conserved sites such as the vineyard and forests. This has led to the creation of alternative tourism options that do not affect the environment. It will be interesting to see how Jamie and Megan react to the pressure created by increased use of alternative tourism options. The business has been mainly serving local clients and retailers but the introduction of online marketing will attract a huge number of clients with awareness of different wine brands and hence the business will experience a lot competition from the substitutes from the two core brands to be introduced (Recklies,2015).

Threats of new entrants:

 

The success enjoyed by Jamie and Megan in their current endeavour has created a lot of publicity and hence the reporter could not wrong in rating the vineyard highly. This success will definitely attract more private individuals to initiate such ventures and hence an expected high number of new entrants.

Market Segmentation:

Jamie and Megan have been keen in developing and nurturing their vineyard and providing wine for local retail clients. The new business idea will definitely extend their offering to include vineyard tours and wine business for both local and international clients. They have a plan for developing a website to drive their online reach to clients. For its tours business the following segments have been identified: individual tourists visiting for special occasion, employees of companies for their corporate events, foreign tourists to UK especially those who need vineyard tours and customers who would want to take a break into the vineyard. For wine business they could consider the local customers, retail business people and the foreign clients as possible segments (Devashish,2011).

       Motivating factors for the Consumption Tour Services

Variety: The ability to visit the vine yard for different purposes will a key winning factor that will attract the clients and especially the local clients who have different occasions and events. The ability to provide both small and packaged tours will create a lot of options for the clients and hence will be a key motivating factor (Calkins,2008).

The price of Services: Most tourists will prefer to visit sites that allow them save costs but at the same time get the best experience. Because of competition from other small scale tourist offers, the business will have to charge reasonable prices in order to remain competitive.

Provision of extended services: The vineyard tours business will be a critical component of the offering by Jamie and Megan and since it targets both local and foreign tourists, the provision of other extended services such airport transfers to tourists on transit to other destinations. Apart from organising packaged tours for corporate organisations the business should also consider other supporting facilities such as conferencing (Mcdonald& Wilson,2011 p.115-120)

Based on the above three motivating factors we can plot a four quadrant segmentation for the vineyard tour segmentation using price and variety. The diagram below shows the segmentations for the vineyard tours for the business. 

Individual’s clients:

Under this segment the business will be targeting individual clients looking for a get out especially during their holidays. This option will attract a large number of clients but they will not require variety and a lot of offerings. This segment is very competitive and hence the need for lower pricing.

Special corporate events:

This will mainly target corporate clients especially employees of companies who are seeking to relaxing experience as they perform and company sponsored function like a conference or outdoor training. This segment attracts very few clients but they have higher financial capabilities hence the business can charge a higher price. The variety is very low as the corporate clients require specific needs.

Tourists:

This is one of the niche segments within the business with a lot of varieties including relaxation, accommodation, catering and transfer services for foreign tourists. In this regard the business will have to offer a big range of offerings to these clients and hence charge a premium price.

Businesses:

This segment will entail a lot of collaborating working with other businesses with a need to entertain their employees and hence it will involve packaged tours. The Jamie and Megan will have to provide variety of services given the diversity in the employees in different companies. Due to greater power that businesses will have especially as potential partners in other areas, the pricing here will be low (Weinstein & Cahill,2014).

Marketing Mix:

Based on the above segments the business can formulate a marketing mix and create an offering that will realise the highest benefit to the business. From the vineyard tours business we have the following market attractiveness factors: Growth potential, Profitability, level of competition and the size of the market. We can score the market attractiveness factors against the segments to come up with a viable offering that will create value for the business.

Market Attractivess Factors

Weightings

Segments

 

 

Individual customers

Corporate Events

Business Employees

Foreign Tourists

1. Growth

20%

8

5

4

3

 

 

1.6

1

0.8

0.6

2. Profitability

20%

6

7

5

8

 

 

1.2

1.4

1

1.6

3.Size

25%

8

6

5

5

 

 

2.8

2.1

1.75

1.75

4.Frequency

15%

6

5

5

6

 

 

0.9

0.5

0.5

0.6

5. Competition

20%

6

6

6

6

 

 

1.2

1.2

1.2

1.2

 

100%

7.7

6.2

5.25

5.75

 

Portfolio Summary:

Based on the market attractiveness analysis, the individual customers scores highly at 7.7 and hence should be considered as part of offering for the clients. The corporate events segment comes second at 6.2. Business should therefore focus on the two segments as they have the strongest capability of delivery for the Jamie and Megan. They should however seek to build the capability in the other two segments of business employees and foreign tourists (Dibb & Simkin, 2013).

Conclusion:

Marketing planning is a key process in creating value for clients and as such the planning process has led to the audit of the environment and identification of the key external and internal factors influencing marketing activities. Other tools used in marketing plans include the competitive analysis and SWOT in order to create a combination of market segments to focus on. The process of market segmentation has led to the identification of the individual tourists and corporate events as possible segments for the business. Jamie and Megan should however try to build their capabilities around the other two segments as they are also key in building product and service portfolio offering for the clients.

 

 

 

 

 

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