Task: The purpose of this individual case study analysis is to further your skills in applying relevant marketing analysis tools. It will also test your ability to identify a range of marketing problems and propose strategical solutions. This will enable you to apply marketing theories and concepts to a “real world” business case. Your first task is to read the following case study:
OzCo Boats Case Study
OzCo Boats is a family owned boat building business based in Coffs Harbour, New South Wales. Operating since1961, OzCo designs and builds high quality, small- sized, luxury boats that are made in traditional handbuilt ways from traditional materials. Until now the business has prospered and it has built up strong reserves of cash. OzCo sell their boats to boat yards and also direct to consumers in Australia. However, the Australian domestic market is shrinking and more and more substitutes are becoming available.
In contrast, there is fast market growth overseas where trading partners are available but, despite being the category market leader in Australia, OzCo has no experience in overseas markets. OzCo has always relied on traditional methods and materials to build its boats; this was fine in the 1960s, 70s and 80s but in recent decades there has been a move to newer and more efficient technologies both in materials and manufacturing processes. With no new models for decades, OzCo has a portfolio of products in decline In the Australian market.
More worryingly, much of OzCo’s manufacturing technology is outdated and the CEO has told OzCo’s staff recently that ‘there is about to be Australian government legislation to restrict the use of some of our boat types.’ Despite having experienced and industry –respected staff, OzCo will not be able to make the technology changes fast enough before their current products become ‘illegal’ in Australia. This is not just affecting OzCo: other traditional boat builders in Australia face possible ruin too.
Indeed, some of the larger and more technologically advanced boat builders are now looking to buy out their smaller competitors such as OzCo in order to acquire their market share, liquidate their assets and then close them down. Because of all of this, OzCo’s employees have low morale and significant staff departures are a risk (that is, OzCo’s best employees are likely to leave for other jobs if things don't improve). On the brighter side, overseas governments place fewer restrictions on the use of traditional boats and OzCo’s current products will be legal there for many years to come. More than this, the growing economies of emerging nations are generating wealthy consumers who have a passion for luxury products.
Based on the case study information above you are to:
Marketing is an activity applied by an organization or a company in order to promote its product and services which includes selling and advertising. The report will analyze a ozco boats case study a case in Australia. It also explained the importance of applying advanced Technology in order to become leading company. This ozco boats case study also illustrate the SWOT analysis and an alternative strategy has been suggested which helps ozCo to develop its products in future.
Marketing is a process through which an organization promote its product and it also includes thinking about the business through the consumer’s perspective. Marketing is an activity applied by an organization or a company in order to promote its product and services which includes selling and advertising. The ozco boats case study includes a discussion of ozCo's business who build boats in Australia. This ozco boats swot analysis discusses about the ozCo's boat and it also discusses the perception of is consumer towards its business.
Perceptual map of Customer Segments
Perceptual mapping helps an Organization in analyzing the consumer perception about their products. The process of perception mapping identifies the consumer thinking about the ozCo's product. It has been found that the consumer found ozCo's product as a stylish product. No matter how an organization think about their consumer but it totally depends on the consumers thinking and their perceptions. In the words of Ylä-Herttuala and S et al. (2018), it is very important for an organization to understand what consumer see in their products are so that they can apply necessary development. The consumer found ozCo's boats as a well design boat. The consumer of ozCo's found the ozCo's boat as a high quality, luxurious and well designed. The business has generated wealthy consumer who have a passion for luxury products.
The boat building industry has struggled to remain in competition from past 5 years with the expected revenue 2.4% through 2018-19, to $1.1 billion. The builders of this industry manufacture Cruisers, rowing boats, yachts, etc. In the words of Gneezy and A et al. (2018), boat building industry in Australia have increased in popularity over the 5 years due to environmental concern and increase in fuel price. On this ozco boats case study the boat Builders have invested in technologies in order to increase their competitiveness. IBIS World has been identified key success factor for a boat building industry such as financial structure of the company, undertaking research and development related to technology, access to most important and current technology and Economics of scale, higher professional skill workers.
Strength: The ozCo's boats are well designed. In the words of Bragg et al. (2018), the ozCo's boat has been made with high quality of material. They build a small sized boat and provide a luxury and comfortable environment to its consumer. The boat has been made from traditional materials. The ozco boats case study analyses business has a strong Reserve of cash and has gained a huge number of consumer in Australia as well as boat yards.
Weaknesses: The ozCo's boat has been made with traditional material and has always adopt a traditional methods and material in order to build it boats, but its competitors have adopted all the new technologies in manufacturing process. OzCo's started decline in Australia market because of applying traditional method. The technology in manufacturing processes used by the ozCo was outdated. The business faces huge number of competition in the market. In the words of Palmer et al. (2017), the substitutes of ozCo's boat are easily available in the market.
Opportunities: The ozCo’s boats are expensive so, the demand of the consumer is totally depend on their level of income they incur. In the words of Kalverkamp et al. (2018), when an individual's income rises, consumer have the money to invest or to purchase the expensive products. So that the demands of the boats increases. On the ozco boats case study, the company gain the opportunity to expand its business in the market by applying advanced technology.
Threats: The ozCo boats are relatively expensive. The demand for the product it depends on the interest of the consumer which represent the prime rate. In the words of Atwal et al. (2017), when the rate of the boat increases then the financing become more expensive which decreases the demand and need of boats. The ozCo started decreasing because of not applying the recent Technology and the substitutes of the ozCo very easily available in the market. The moral of ozCo's employee started decreasing and it can referred as a risk to the company.
Strategic alternative Analysis
Market penetration: Market penetration occurs when a business penetrate a market in which market the current product already exist. The company needs to gain the consumer of the competitors in order to achieve this the company needs to attract anon users of its product. Market penetration is referred as a lowest risk so that the company needs to create a new strategy for the development of his product and business.
Market development: On this ozco boats case study The target of market development is consumer development who are not buying the products of the company. In the words of Lavriša et al. (2018), it also helps an organization in targeting the new consumers in order to expand its market, before this the company needs to identifies the strength which should lies in their products and they need to commit that their products have those strength. So that a consumer can easily attract towards their product then only a company can achieve the development by this strategy.
New product development: New product development is a method that has two ways such as product designing and engineering and other includes marketing analysis and research. By applying a strategic process the company can easily see the development of its product on the first way. the company should apply a product development strategy as their strength lies within its product.
Diversification: Diversification is a method which increase the profit of the organization along with the sales from the new products in the market. The company should to apply ansoff diversification strategy in order to expand its business in a new market with new products but there is a high risk with diversification. The company should apply the process of diversification only if it has high return on investment.
The ozCo needs to apply new product development strategy as their product has been made with traditional methods and material. This company should apply new technologies in order to remain in the competition. The company should adopt advanced technology in order to expand its business in the market. As ozCo always tried traditional method and material in designing its boats due to this it is not able to experience overseas market. This company needs to move to fewer new advance technologies in manufacturing process. In order to apply development strategy the company needs to make it boats with the advanced technology which has been used by its competitors in order to remain in the competition again and can become a leading boat building company in Australia.
This ozco boats swot analysis depicts marketing as an activity applied by an organization or a company in order to promote its product and services which includes selling and advertising. It has been concluded in the above ozco boats swot analysis that the consumer of ozCo found its boats as a well design boat. The consumer of ozCo's found the ozCo's boat as a high quality, luxurious and well designed. OzCo's started decline in Australia market because of applying traditional method. IBIS World has been identified key success factor for a boat building industry. The company has face a huge risk and competition in the market and substitutes of its product are easily available in the market. It has been found that the company should apply a product development strategy as their strength lies within its product. The ozco boats case study explores the importance of a company needs to move to fewer new advanced technologies in manufacturing process. Ozco boats case study assignments are being prepared by our marketing assignment help experts from top universities which let us to provide you a reliable Australia assignment help service.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Bragg, M.A., Roberto, C.A., Harris, J.L., Brownell, K.D. and Elbel, B., 2018. Marketing food and beverages to youth through sports. Journal of Adolescent Health, 62(1), pp.5-13.
Gneezy, A., 2017. Field experimentation in marketing research. Journal of Marketing Research, 54(1), pp.140-143.
Kalverkamp, M. and Raabe, T., 2018. Automotive remanufacturing in the circular economy in Europe: marketing system challenges. Journal of Macromarketing, 38(1), pp.112-130.
Lavriša, Ž., Erjavec, K. and Pravst, I., 2018. Trends in marketing foods to children in Slovenian magazines: a content analysis. Public health nutrition, 21(18), pp.3344-3353.
Palmer, D.E., 2017. Conceptions and Misconceptions of Virtue in Marketing. Handbook of Virtue Ethics in Business and Management, pp.1027-1035.
Ylä-Herttuala, S., 2016. ADA-SCID gene therapy endorsed by European medicines agency for marketing authorization. Molecular Therapy, 24(6), pp.1013-1014.