Market Analysis and Product Development Report 1 The Business School University of Wollongong MARK101/213 Principles of Marketing Market Analysis and Product Development Report Spring Session 2023 Assessment Brief 1. Introduction Marketing is a combination of science and art! YOU need to display both in this major assignment. The scientific part relates to the analysis of the market, followed by identifying the appropriate segment to target. After this has been established (from your thorough research and analysis) you are then able to be artistic, by creating a product that fits the market position you want to achieve. This would include the design of a product, its attributes and branding, plus factors like the pricing, promotion and the distribution of the product. The creativity shown in the development of your 4Ps (Product, Price, Place, Promotion), will need to reinforce the intended position you are trying to achieve for your product in the mind of the target market. The subject does not have an exam, this major report will therefore determine if you have achieved the learning objectives for this subject, or not! If you fail this major assignment you will get a fail grade (or technical fail grade) for the subject. Please, please, please work hard on this assignment, as this is a major piece of work that hopefully you can be proud of and add to your portfolio when you apply for jobs in the future. Market Analysis and Product Development Report 2 2. Assignment Details Assignment Type A major marketing report and video pitch. Weighting 40% – You must pass this assignment to pass the subject. Length Anywhere between 1,500 to 3,500 words for MARK101 students (and 2,000 to 3,500 words for MARK213 students). A professional report which should be well presented and edited. Plus a 2-minute video (max). Assignment format There is no strict structure for this major assignment. However, you need to submit a professional marketing report, along with a 2-minute video pitch, that is easily understood, clear to read and professional to look at. You can use any package to create but please convert into PDF before submitting. You are encouraged to use tables, figures and pictures to help communicate your findings with the audience that would be reading the report. Please reference all sources referred to in your report, this is particularly important in the first part of your report where you are identifying the dynamics of the market that you are examining. Make sure that there is a reference list at the back of your assignment and in-text citations . If you do not understand how to reference correctly please access the numerous University resources that can help you; for example: https://uow.libguides.com/refcite/uowharvard Due date 02 Nov 2023 (Thursday in Study Recess Week 1) Final submission time: 8:00pm via Moodle Return date As this is the final and major assignment for this subject, students will not receive marks or feedback until after the grades have been released for the subject. Market Analysis and Product Development Report 3 3. Context – The Australian Sunscreen Market The market that you will be examining in this major assignment is the Australian Sunscreen Market. You will need to undertake research to understand the dynamics, the key players, and the broad consumer behaviour trends of this market. By the end of your analysis you should clearly know who the market leaders are, and what the major products are in the Australian Sunscreen market. What segments are there within the Australian Sunscreen market? It is also critically important to understand the consumer behaviour of customers in the Australian Sunscreen market. Who buys which sunscreen products? And why do they buy those products? This is all part of understanding the consumer behaviour of the customers within this market. Searching the Internet, and the databases at the UOW library would be a very good starting point for your research. It is important that you gather information from a range of sources for the Australian sunscreen market and analyse all of these sources to develop a fuller understanding of the dynamics of that market, and how the customers act within that market. 4. Sections of the Report There are three key sections in this marketing report. The external analysis section is worth 20% of your marks. The segmentation, targeting and positioning section is worth 20% of your marks; and, the product development section is worth 40% of your marks. The final 20% is allocated to the style, professionalism, editing, referencing and quality of your report and video. 1. External analysis – 20%: In this section you will need to collect, by undertaking secondary research, as much information as you can find about the Australian sunscreen market. Questions that you are trying to answer include: I. The size of the market (for both dollar and item sold). II. The market share of the key products (both the market share for companies, and for individual products). III. The reasons why consumers purchase the products; their underlying motivations. IV. Key emerging trends in the market. V. Macro environmental forces that could lead to opportunities or threats in the market. 2. Market segmentation, targeting and positioning – 20%: From your external analysis of the market, you will need to identify the different segments that exist. In other words, segment the market in a way that is practical and insightful (remember to include marketing theory) (also note here that there is no correct answer to how to segment a market; just more appropriate and relevant answers). Please profile the segments and clearly identify which segment you are targeting and why. Now that you have identified and justified the segment that you are targeting, write a clear positioning statement that highlights the position you hope Market Analysis and Product Development Report 4 to achieve in this segment, the position you hope to achieve for your product in the minds of the customers. Creating a position map will help you determine GAPS in the market. Before starting this section make sure you understand each of the elements of the diagram below: (Source: Armstrong, et al. 2021, p. 174) There are three important areas in this section of the assignment: I. Market segmentation: How is the Australian sunscreen market segmented? In other words, what groupings of customers are there? Is there a convenience segment? Sensitive-skin market? (just examples)? You will need to ask yourself who are the key customers for each of the segments. II. Targeting: for this assignment you will need to target one of the segments. Therefore one of the groupings (or segments) that you identified above will be the one in which you will launch your new product. Please clearly explain why you selected this particular market segment to target your new product. This should be informed by your market research. III. Positioning: Please read the theory on product differentiation and positioning as this is the part of marketing which is so important and where students struggle to understand the meaning. Positioning relates to establishing your new product in the mind of the customer; where it will be pitched against other similar products within that segment. In other words, how do you want your target market to think about your product? Please consider using a perceptual positioning map; and make sure you present a clear positioning statement for your new product. 3. New product development – 40%: NOW, the creative, artistic part of the assignment! Create your new product (the packaging and brand) that will achieve the intended position in the target markets mind. Have separate sections for Product, Price, Place, and Promotion (the 4Ps). Please be aware that how you design your product, price, place, and promotion will need to reinforce (in the mind of the target customers) the intended position you are trying to achieve. You will lose marks if your creative strategies in this section do not align to the positioning statement you identified in the previous section. I. Product: You need to actually draw (or design) your packaging for your sunscreen product. Please include images of this in your assignment. Please consider the brand name of your product as well. This part of the assignment will only have limited Market Analysis and Product Development Report 5 writing and explanation attached; with more graphical creative design of your packaging and the brand name. GET CREATIVE; GET DESIGNING! (Please note: You will not be marked down if your artistic abilities are not that high, we are looking for the effort and creativity that you show). II. Promotion: How are you going to communicate your value proposition to the target market? In this section you need to design creative communication strategies for your new product that establishes your intended product positioning in the mind of the target market. Are you going to have TV commercials, billboards, Internet ads, and/or a website? You should show examples of graphical mockups/story boards of these promotional activities. Try to keep a common theme through all your promotions; in the industry this is called ‘on message’. III. Place (or distribution): Where is your product going to be sold? It is not just as easy as saying that you are going to sell it through Coles or Woolworths. Why would they want to stock your product? What advantage would it be to them to stock the product? Is there a better, or more appropriate distribution strategy you could use to sell your sunscreen? Think LOCAL! Think online distribution. Make sure this part is in line with your promotional strategies as well. IV. Price: What will be your recommended retail price for your sunscreen product (or more if they come in a pack)? As pricing theory tells you, you will need to consider competitors’ prices, your costs, and what your target market is willing to pay. Please explain these when identifying the price. Please remember that if you are selling through a retail outlet, you will be selling the product at a lesser price to the retail outlet than the recommended retail price. Please include both of these prices. A key part of this section is to create an Excel spreadsheet forecasting sales over three years (by years). From that you can determine the revenue that will be generated by the sale of your product. You will need to include an estimate/guestimate of fixed and variable costs to give you an estimation of the profitability of the venture and the breakeven point. 5. Grading criteria The mark you awarded will be determined by how well you achieve in the following areas: Market analysis 20% Thorough research from a number of sources, including books, journals, industry reports and internet sources. Clearly presented market structure, including market share and total market value. An outstanding exploration of the topic with excellent integration of a wide range of material. Critical analysis and presentation of the micro and macro environment for the market. Display a clear understanding of the market structure, including competitors and market share. Identify important elements of consumer behaviour for the market. Market Analysis and Product Development Report 6 Segmentation and positioning 20% Clearly display the various segments within the market identified. Describe and prolife each segment. Identify the market your product is going to target. Justify why you are targeting this market. Design a positioning map (perceptual map) for the target market you are examining; and identify where your new product will be positioned in this target market compared with the direct competitors. Write a Positioning Statement that highlights where your new product will reside in the target markets mind when compared with direct competitors in the target market. Product development 40% Present a creative new product to the market. However, the creativity of this new product will need to fit and reinforce the positioning you are trying to achieve in the target markets mind. Design and present the packaging of your new product. Design and present the brand name of a new product. Clearly describe the new product itself. Display a communication strategy that helps reinforce the intended marketing position in the mind of the target market. Justify your pricing for the product, and present a forecast for revenue. Identify a coherent distribution strategy for your new product. Presentation 20% Present a professional report that would be something you would expect to receive from a consulting company. Undertake intensive editing of the report so that it is clear and easy to read, with no grammatical or spelling errors. Undertake correct referencing throughout this report. Produce a high quality 2-minute pitch video (include the link on your cover/title page). ***IMPORTANTLY your pitch needs to focus on convincing a distributor (eg retailer) to stock your product in their stores, for example, Coles or Priceline. You should address the following points: Why would the retailer want to stock your brand of sunscreen? What is the value to the customer that is not already delivered by existing competitors (positioning)? What are you going to do to make the product sell (this could include promotional support and pricing decisions)? Note: if you are choosing to sell direct to public via on-line sales then make your pitch focus on why a customer would buy direct and not via a retailer (plus feature the value your sunscreen offers the customer versus what is already available in the market).