Braaap marketing mix 1

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    3
  • Words:
    1948

Contents

Introduction 3

Key characteristics of Braaap products and services and their significance to the market 3

Pricing policies and pricing variables 4

Promotion 5

Distribution and level of service 6

Customer base 6

Marketing mix and relevance to customer base 6

External environmental factors impact on marketing mix 7

Consumer priorities, needs and preferences and how they impact market mix 7

Evaluation of new products/services against marketing objectives, target market characteristic and desired positioning 8

Marketing mix in relation to organizational, strategic and operational marketing objective and the appropriate mix 8

Conclusion 9

References 9

  1. Introduction

Braaap is an Australian motorcycle manufacturing company founded 10 years ago in Launceston by Brad Smith. It’s a retail organization store for motorbikes that deals with physical goods. Brad had a vision of developing superlite, affordable, high quality and unique bikes that could be ridden and jumped by adults confidently (Braaap.com, 2016). Moreover, he had vision of making motorcycling more accessible and enjoyable thus enabling more people have the love for motorcycling. Being a young motorcycling manufacturing company, Braaap is emerging into an industry dominated by few and well dominated motorcycling brands (Braaap.com, 2016). As a brand, Braaap have to find means of outdoing his competitors. This report will identify Braaap key characteristics of its products, services as well as their significance to the market. It will also review the pricing policy and determine the effects of demand by analyzing the pricing variables. Lastly, the report will examine Braaap promotional methods, distribution channels, level of customer provided as well as Braaap marketing mix components and their intended objectives.

Key characteristics of Braaap products and services and their significance to the market

Braaap offers a variety of services and products to its target market. It offers three types of motorbikes; Dirt, Youth and Road (Braaap.com, 2016). To counter competition from well-established competitors, Braaap offers most of its products and services with a life time warranty hence becoming the only motorcycle company to offer lifetime warranty. By offering life time warranty, Braaap aims to improve attraction of its products to its customers by making them not to worry about maintenance and repair (Braaap.com, 2016). This feature enhances how its customers perceive the company and its values. This is in contrast to its competitors who offer a 3 years warranty.

As an outstanding brand, Braaap offers the feature of customization to its customers. This makes it a unique and significant motorcycle company in the market. It gives the customers the priority of choosing their preferred color for their motorbikes (Braaap.com, 2016). Also, it gives its customers the option of placing stickers on their bikes provided that they do not interfere with performance and safety of bike. Further, Braaap offers both retail stores and online selections. This offers its target customers the flexibility of purchasing their preferred motorcycles with ease.

To enable its customers acquire their preferred bikes, Braaap offers flexible financial packages to them. It offers bike of different prices hence giving its customers a wide range of choices as per their budgets. Braaap offers rental buy options to its customers. This feature allows its customers to start riding their bikes and pay later. According to braaap.com (2016), Braaap offers special built adult bikes. They are manufactured with the adults mind in place. The bikes are designed to provide support and comfort for ease movement of adults. Hence Braaap designs bikes for classes be it adults, kids and motoring enthusiasts.

Pricing policies and pricing variables

Braaap uses several pricing strategies. First strategy used by Braaap is product bundling policy. Through this policy, Braaap offers several products as a package to its customers. This technique aims at providing more services and products at a lower price as compared to purchasing each item individually (Dan, Xu, & Liu, 2012). The products are organized according to customers want. For example, rather than just buying a bike only, Braaap includes helmet and protective gear all at a reasonable price. Product bundling can be viewed as offering deal or discount for large purchase of product rather than purchasing individual parts.

Second, Braaap uses product line pricing policy. In this policy, Braaap steps prices between its products line items (Dan, Xu, & Liu, 2012). It achieves this by using high and low prices technique in the motorcycle industry. Through this strategy, Braaap offers the same or different prices as those of its competitors. This technique is intended to capture sales to already Braaap consumers buying the brand. Through this policy, Braaap consumers have then likelihood of responding positively to its brand since they know and love its products. Moreover, its customers are willing to buy new products based on their previous positive experience on Braaap products. Braaap success in motorcycle industry is attributed to its pricing variables. Through utilization of market position and business benefit, Braaap has positioned itself in the world’s motorcycle map. It uses bike leasing arrangements, discounted percentages, advertising as well as customer ownership competitiveness as its major pricing variables (Hammond, 2012).

    1. Promotion

Promotion acts as a form communication of business to its customers (Meo et al., 2014). Through communication, Braaap aims in attracting its target customer’s attention hence giving them information about its products. This is aimed at fostering their interests hence motivating them to purchase. Braaap promotes its products both in its domestic market in Australia as well as its overseas market. Through promotions, it increases its customer’s perception of its prices as well as motivating them to buy its products. Moreover, as a brand, Braaap utilizes its dealer and franchise as sales channels or its products.

    1. Distribution and level of service

The distribution channels acts as link between Braaap customers and the manufacturers whereby distributors act as exchange point for information between consumers and manufacturers. Braaap uses its online store to reach out to international markets. This has proven effective as customers can purchase Braaap products from the convenience of their homes or work places. Moreover, it has physical stores based in several places in Australia such as Melbourne, and Sydney. To enhance its customer relations, Braaap reaches out to its customers through social networking media such as Facebook, twitter YouTube, Google+ and even though its blog (Braaap.com, 2016).

    1. Customer base

Braaap target customer base is driven by their passion and love for motorcycling as a professional or hobby. It identified the market gap in the market and provided suitable products for all people; for the young as 5 years, youth and even the old. Mostly, Braaap target market is for the young people ranging between 20-35 years. This is attributed to the fact that most young people have the passion for practicing motorcycling as hobby or even profession (Heraldsun.com, 2013). To remain relevant to the market, Braaap must increase its awareness to more people be it women and men of all age brackets as well as increase its product awareness campaigns. This is to achieve through social networking or even through Braaap website. These are convenient means as its customers can browse or even purchase at the convenient of their own homes or workplaces without going to their store.

Marketing mix and relevance to customer base

To be a leader in motorcycle industry, Braaap have well utilized marketing mix. The different market mix serves different purpose for Braaap target market. Pricing is an important component of Braaap market mix as it determines its profit and survival in the market (Huang, 2012). Low prices don’t always guarantee high selling rate for business. In this context, Braaap offers various price ranges for all its customer needs. Moreover, it offers loan payments that help its customers to own bikes. Further, Braaap offers different products for different age groups in its target market.

Distribution is an important factor of market mix. Businesses have to position and distribute their products to their potential buyers (Huang, 2012). To this effect, Braaap uses physical branches that are distributed all over countries. Also, Braaap has online stores that enhance its opportunity by enabling its customers to purchase goods online. Braaap offers promotion services to its customers whereby it offers reduced priced or special prices for selected items. This is aimed at bringing more customers to its stores.

External environmental factors impact on marketing mix

These are factors that impact but occur outside business such as competition, economy, legal systems and exchange rates among others. Competition is a major external factor that directly impacts Braaap. Its competitors offer similar products and goods. When their customers opt for their competitor’s product, they risk losing their business margin. Also, since Braaap deals with international markets, the exchange rates are of significance to its business. If Australian dollar becomes strong to importing currencies, it results to bikes becoming more expensive than those of its competitors hence reduction in its demand (Hammond, 2012).

Consumer priorities, needs and preferences and how they impact market mix

Different customers have different consumer priorities. Braaap has designed various bikes for different consumers that match with their needs. For instance, young people have the priority of choosing a brand name or well-known product since they match their preferences. On the other hand, adult would choose a brand that would guarantee them safety, comfort ability after sales services and even the lifetime warranty. Also, more male than female have love for extreme products. This attributes for more promotion to impact more information on Braaap products to its customers.

    1. Evaluation of new products/services against marketing objectives, target market characteristic and desired positioning

Product development is generated by business ideas which are unique and different from competitors in the market. When establishing effective marketing objective, Braaap should adopt the SMART marketing policy. This refers to Braaap setting specific, measurable achievable, realistic and time specific objectives. The new products should be designed to meet their customer needs. The product should comply with new development in the motorcycling industry.

Marketing mix in relation to organizational, strategic and operational marketing objective and the appropriate mix

Braaap marketing mix is based on consumer information and availability (distribution) of goods to its consumer market. Braaap offers affordable prices to its products. This is further facilitated by loan on pay services for its products. Also, Braaap is offering different products; riding gears, spare parts and bikes for all ages (Braaap.com, 2016). The firm is continuing to offer it products both on retail shops located in various areas as well as through online shops. Furthermore, Braaap is promoting its products through social networking which is an effective form for younger generation. The most appropriate mix is distribution/place. Through online stores and retails shops, Braaap will reach more markets.

  1. Conclusion

Braaap is an example of business that has utilized the marker niche. Through diversification and provision of products that meet customer’s needs, Braaap has emerged to be among top leaders in the motorcycle industry dominated by well established companies. This is a firm that has the right market mix which can be improved through adjustments recommended.

  1. References

Dan, B., Xu, G., & Liu, C. (2012). Pricing policies in a dual-channel supply chain with retail services. International Journal Of Production Economics, 139(1), 312-320. http://dx.doi.org/10.1016/j.ijpe.2012.05.014

Hammond, M. (2012). 50 new franchises planned for mini motocross brand Braaap — StartupSmart. StartupSmart. Retrieved 2 September 2016, from http://www.startupsmart.com.au/franchising/50-new-franchises-planned-for-mini- motocross-brand-braaap/201204176021.html

Huang, R. & Sarigöllü, E. (2012). How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal Of Business Research, 65(1), 92-99. http://dx.doi.org/10.1016/j.jbusres.2011.02.003

Meo, A., Abbas, M. D., Sajjad, M. N., Rizwan, M., & Hameed, M. S. (2014). The impact of promotional tools on sales promotion. Journal of Public Administration and Governance, 4(2), 202-216.

Braaap.com (2016). braaap Motorcycles. Retrieved 2 September 2016, from https://www.braaapmotorcycles.com/pages/about-us

Heraldsun.com, (2016). Retrieved 2 September 2016, from : http://www.heraldsun.com.au/news/unique-business-niche-builds-world-wide-brand-for- braaap/story-fnjj6013-1226714266035