kogan retial organization report5
TRANSCRIPT
KOGAN RETIAL ORGANIZATION REPORTBSBMKG502B ESTABLISH AND ADJUST THE MARKETING MIX
[ MAY 5TH, 2011 ]
MISS JIRATTIKARN CHAIPATTANA
STUDENT ID: 20092330
Kogan is an Australian manufacturer
and retailer of consumer electronics devices i.e. HD TVS, LCD TVS, LED
TVS, PLASMA, GPS, DIGITAL PHOTO FRAMES., etc. The company, founded in 2006 by Ruslan Kogan, sells products direct
from China to customers in Australia and
theUnited Kingdom. Company Mission is to make the latest technology affordable for all Australians.
COMPANY BACKGROUND
KEY PRODUCT & SERVICE
KEY PRODUCT: High Definition LCD
TVs and LED TVs make up the bulk of Kogan Technologies' products.
Product range: HD TVS, LCD TVS, LED TVS, PLASMA, GPS, DIGITAL PHOTO FRAMES., etc.
Innovation & Technologies such as Agora range
KEY PRODUCT & SERVICE
SERVICE: 7 days money
back guarantee Extended
Warranty Live Price Fast Delivery Chat live to sales
team TV quick start
guide
CURRENT TARGET MARKET
Males 25-49 yrs. Females 25-24 yrs. Professional or white collar profession. Single > Family Income: > $50,000. Prefer electronic and entertainment
devices Buy electronic device via online
shopping.
PRICING STRATEGY
The company competes on price by selling a budget range direct to consumers, bypassing wholesalers, distributors, and retailer.
Due to “LivePrice” service that cuts out the hidden cost of finance and gives power back to the consumer, whereas investors who usually fund the production of consumer goods expect a huge return.
After launching LivePrice in Australia, Kogan had sold nearly $330,000 worth of products using the new pricing system in 24 hours
PRICING BY BRAND: LED TV
24" 32" 40" 42" 46" 47" 52" 55"
SAMSUNG X
$697-
$699$1179- $1224 X
$1399- $2014 X X X
LG X X X$1495 - $2580 X
$2149 - $3291 X
$2115 - $4270
SONY X X$1129 - $1699 X X X
$3696 - $3929
$4989 - $6999
KOGAN259
1
$599 2 639 3 $779 4 $929 5 X X 1599 6
Kogan LED TV price is significantly lower than key brands in all size range; 16”-24” , 26”-32” and 36”-55” and all products include offering service “Free Shipping”
1= 24" Full HD LED* TV with PVR2 = 32" Full HD LED* TV with Blu-ray Player, DVD Player & PVR - BD Series3 = 40" Full HD LED* TV with PVR (Samsung Panel)4 = 42" Full HD 100Hz LED* TV with PVR - DELUXE Series5 = 46" Full HD 100Hz LED* TV with PVR (Samsung Panel) - DELUXE Series6 = 55" Full HD 100Hz LED* TV with PVR (Samsung Panel) - DELUXE Series
PROMOTIONAL METHOD
TV News
programs
Newspaper Business & Investment
Sales promotion
special price, online
discount coupon, free
shipping., etc.
MagazineBusiness&
Investment
PROMOTIONAL METHOD: MEDIA
Kogan utilizes mass media and social network i.e. TVC, Newspaper & Magazine and Internet to promoteCurrent marketing news, corporate PR news and new product review.
PROMOTIONAL STRATEGY
TVC, Newspaper & Magazine • Product review: Australia's leading journalists to endorse Kogan
products. • Corporate News: Corporate PR , Management profile to
strengthen company trustworthy• Marketing News; update innovative product, Market competition.,
etc. Internet• PR news: update marketing, product innovation & corporate
news• Web blogs • You tube: Product review to promote the latest Kogan via videos
and reviews. • Face book & Twitter: daily update, Live chat to sales team Sales promotion • Kogan discount code coupon: such as Internet TV, Home Audio,
eBook electronic readers, PVRs, Cameras and even home appliances.
• Free HDMI cable • Free shipping • Live price
DISTRIBUTION CHANNEL STRATEGY
Online retailer Kogan cut out the
'middle men' and working directly with our factories overseas, we can sell the latest technology at the lowest prices. By cutting out the 'middle men' and working directly with our factories overseas, we can sell the latest technology at the lowest prices.
PRODUCT INNOVATION: AGORA
The Kogan Agora Internet TV Portal You can stream movies from YouTube, Ustream, and any
website with video. You can browse the web, chat to their friends on social media, share and view photos, movies and music, and play Angry Birds on your TV!
The Kogan Agora 12” Laptop: A complete productivity device for the budget
conscious for every student shouldn't have their own laptop.
The Kogan 7” Android Tablet A tablet entertainment device for business traveler and
on-the-go entertainment lover.
COMPETITORS: JB HiFi
JB HiFiStrength: • A well
recognized brand name and clear position as a low price retailer.
• A specialist product range, differentiating it from competitors. For example, it is a back catalogue retailer,
Weakness: • Discount
prices on outdated models leads to a reducing margins.
COMPETITORS: JB HiFi
Secured online transaction
Range of product
Delivery
Price
Warranty
Popularity
0 20 40 60 80 100 120
Quite lowlowmedium highQuite high
JBH gained high in many brand value, 75% of RD selected JBH value high in terms of Price, Warranty and Popularity. Brand should be high because of it have strong in retail marketing.
COMPETITORS: e-Bay
e-BayStrength: • Market leadership
• Intellectual property Brand
• Pay PalWeakness:• Advertising revenues
• Technology development
• Increased expectations
COMPETITORS: e-Bay
Secured online transaction
Range of product
Delivery
Price
Warranty
Popularity
0 20 40 60 80 100 120
Quite lowlowmedium highQuite high
100% selected the highest scale for e-Bay in popularity , it can imply that e-Bay brand is quite well-known and strong in the market. And 75% of RD selected a wide range of the products.
COMPETITORS: Harvey Norman
Harvey Norman
1. Retail products: Electrical, Computers & Communications, Small Appliances, Furniture, Bedding & Manchester, Home Improvements, Lighting and Carpet & Flooring. 2. Stores in Australia, New Zealand, Slovenia, Ireland, Singapore and Malaysia. 3. Recently created online store, tried to offer more advantages of online shopping to the community, such as price, convenience, customer service and ease of research and comparison.
COMPETITORS: Harvey Norman
Secured online transaction
Range of product
Delivery
Price
Warranty
Popularity
0 20 40 60 80 100 120
Quite lowlowmedium highQuite high
100% of consumer selected medium scale of Delivery, Range of the product as well secured in transaction, imply that Harvey Norman gained medium recognition in those brand value.
PEST Analysis
Political
• GST laws
Economical • Foreign exchange rate, it may not effects much to Kogan since their products are manufactured in China.
• Interest rate; higher interest rates may deter investment because it costs more to borrowSocial cultural • There is the “drift to thrift”. Value became a stronger influencer
of buyer behavior and Kogan has continued to build on its reputation of low prices product.
• Consumers are highly likely to research online (product reviews) before they make an offline purchase.Technological
• Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as Kogan organizations providing the products.
SWOT
Strength: •Affordable price•An online consumer electronics store, Kogan’s reinvesting business to help make our products better and more affordable.
Weakness: •Low brand awareness•Despite Kogan spend amount of budget for media and publicity i.e. TV, Print, and a bit much via online.
Threats: •A slowdown in consumer spending•Competitors may cut prices to maintain or grow market share. •Both factors will compress Kogan sales.
Opportunity: •Innovation in consumer electronics will fuel demand for the latest products.
CONSUMER BEHAVIOR
Kogan brand gained the lowest awareness (5%) comparing to the key competitor; JBH which gained 50%, e-Bay 30% accordingly.
Consumers are mostly influenced by themselves and family group i.e. parents (65%). When they decided to buy online product.
CONSUMER BEHAVIOR
Majority of consumers often shop via online at home (75%).
Buying / Shopping period is variance, Most of consumers shop when they need the products(50%). And some of them bought product by monthly (35%)
CONSUMER BEHAVIOR
Timing Online Shopping: Consumers mostly shop via online on evening (70%) and morning time (20%) respectively.
CURRENT MARKETING MIX
Product & Service • Key product: High Definition
LCD TVs and LED TVs• Innovation: Agora range • Key service: Live Price; cuts out
the hidden cost of finance that means you save more!!
Price: • Affordable price, we can
sell the latest technology at the lowest prices.
Place: • Online store, cutting out
the 'middle men' and working directly with our factories overseas, we can sell the latest technology at the lowest prices.
Promotion: • Mass media: TV, Print, Internet • Face book, Twitter and Kogan
blogs• Online discount coupon• Free shipping• $ 5,000 Giveaway (5th Birthday)• Free HDMI cable for JBH user.
MONITOR AND ADJUST MARKETING MIX
Monitor and implement Brand reputation & promotional activity against communication objectives in the marketing plan
Monitor product, pricing and distribution decisions against organizational policy and the objectives of the marketing plan
Monitor marketing results against targets in the marketing plan
Monitor marketing revenue and costs against budget, and analyze record variations
MONITOR MARKETING MIX
Promotional
activity
• Paid monitoring service: Nielsen Buzz Metrics, Buzz Logic, Cymfony, Trackur
• Free social blog: Google, Blog Posts, Blog Comments, Social Comments, Discussion Boards, Twitter, Friend Feed, Social Search, Interactive Search
Pricing
• Measuring customer value
• perceived value analysis
• Distinguishing between attributes, benefits, and values for effective pricing
Target Market
• Customer-focused research.
Marketing Revenue
• Measuring return on investment
CURRENT MARKETING MIX
Product & Service • Key product: High Definition
LCD TVs and LED TVs• Innovation: Agora range • Key service: Live Price; cuts out
the hidden cost of finance that means you save more!!
Price: • Affordable price, we can
sell the latest technology at the lowest prices.
Place: • Online store, cutting out the
'middle men' and working directly with our factories overseas, we can sell the latest technology at the lowest prices.
Promotion: • Mass media: TV, Print, Internet • Face book, Twitter and Kogan
blogs• Online discount coupon• Free shipping• $ 5,000 Giveaway (5th Birthday)• Free HDMI cable for JBH user.
Branding: Should strengthen trust-worthy as well-
innovative brand image Should accelerate to build up brand awareness
New Target market: Continuously expand to new target market
with new product such as Agoda series. Communication:
Should increase brand awareness by adjust media vehicles i.e. SEO, Tri-vision in high traffic venue i.e. Supermarket.
ADJUST MARKETING MIX
Pricing: Should continue “LIVE PRICE” and bold up
“7 Days money back guarantee” promotional campaign.
Place: Should maintain on-line store because Kogan’s
targets prefer to buy product via on-line since it’s convenient to them.
ROI: Maintain good relation ship with China
manufacturer to gain high profit
ADJUST MARKETING MIX
THANK YOU