ACBUS106A Marketing Plan of innovative ATM: Advertisement Strategies Assessment Event 3 Answer
MARKETING PLAN OF ATM MACHINES
The report is a marketing plan that has depicted in detail the steps to be followed for marketing an innovative ATM. The current business environment has been analysed by use of PESTLE to evaluate macro factors and SWOT to analyse the Micro factors. It is seen that the ATM are in demand in the market. The data of urban banks have shown an increasing trend of using ATM by most urban and semi-urban people of the country. The detailed market segmentation has been carried out and based on that product positioning is done. Urban banks are the main customers that should be targeted. Moreover, to develop an effective relationship with the urban Atm users the digital media marketing and print media marketing is to be formulated. TV advertisements and endorsements are also to be done to increase market footprint. The detail promotional schedule has been formulated that should help in increasing the revenue and sales of the ATMs. The plan for evaluation of the success of the marketing plan is also carried out.
In this world of globalization marketing plan is one of the essential components that helps an organisation to establish a competitive advantage. The marketing plan is based on macro and microfactors in a business environment. Digital banking and one-step transfer of cash have created a demand for innovative ATMs with sophisticated technology. In this report marketing plan of innovative ATM will be depicted. Market segmentation and target market profile will be analysed in detail. Moreover, position positioning strategy and 7 P's of marketing will be evaluated. The details of the promotional activity and its impact on the market will be analysed. The detailed distribution process and advertisement strategies will be discussed.
Situational analysis is one of the most important components that helps in examining different perspectives to find the best-fit strategies.
Political: Australia is a G 20 country and has a stable government. The government is responsible for the welfare of the state. The government is promoting the ideal environment for innovation in business by the implementation of sophisticated technologies. The government is giving cess in tax by almost 20 per cent while investing in startups and new technologies(Mitchell, and Thompson, 2020). This is an ideal condition to devise innovative ATMs for better public usage. The government has a favourable relationship with neighbouring governments to enhance investment.
Economic: Australia is the world’s 13th largest economy with a growth of almost 2 per cent per year. The GDP of the country is 1.376 trillion dollars. The government believes in pure investment and gives the concession to business who have turnover less than 25 million dollars. The inflation rate is within 1.5 per cent that implies innovative business can be developed in the country. The growth of the economy is stable with nominal per capita income of 53,825 dollars(Rba, 2020).
Social: Australia has a relatively smaller population compared to its size which is 23 million. According to data the use of ATM among the people is increasing by almost 30 per cent in the last decade. The electronic booths are easily accessible and less time consuming for the general mass of the country. This is a favourable condition for implementation of sophisticated ATMs which have higher operational efficiency and better privacy settings. Data suggest that 40 per cent of people face the problem of data theft and technical difficulties in old ATMs. People are tech-savvy and 70 % have a strong presence in digital media(Frue, 2020).
Technological: Technologically Australia is very advanced with almost 65-billion-dollar investment. There is the presence of digital platforms and software for marketing. The technologies to device innovative ATMs are present for example Cryptographic software. It helps to safeguard the data of consumer from being hacked by hackers. There is the presence of strong Internet and WIFIfacilities in the provinces so it can be used toperform effective business operations.
Legal: The legal structure is well defined by the central government that includes the data encryption laws, employment laws and communication laws. In a marketing campaign, there is less chance of theft of intellectual property in the state. There is the presence of employeesact companies act to effectively manage business operations in a lawful process(Core, 2020).
Environment: Itis one of the major concerns for the Australian government. The companies who developed digital marketing that helps in the reduction of carbon footprint compared to physical marketing are welcomed by the government. The triple bottom line model helps to create a balance between society, environment and economics.
Figure 1: Increase in percentage of Atm user in-country
The microenvironment is one of the most important factors for the development of any marketing plan and it is performed by SWOT analysis.
Table 1: Swot Analysis
(Source: Created by learner)
Analysis: The demand for innovative ATMs are high in the market. There is the presence of digital marketing platforms and integrated platforms of marketing. The major weaknesses are the lack of coordination and experience to implement the marketing campaign. Through situational analysis and Smart objectives, the plan is to be formulated for error-free implementation.
The capability analysis is an important internal environment analysis that helps in the formulation of objectives for the marketing campaign. There is a limited amount of finance and human resource present for the marketing campaign. The zeal is very high among the members and there is a requirement of a common objective to get them to motivate for the campaign. Technological knowledge is present that includes SEO, digital and social media marketing and collaboration with an e-commerce website. The cohesion among the team should be maintained and the allocation of resource needs to be done according to the strength of employees.
The Smart objectives are very important to define the scope and focus of the marketing plan which are mentioned below:
- To achieve at least 10 % revenue from the digital marketing campaign with the next two year
- To acquire at least 20 business deals within the current financial year with cost per acquisition of 2000 $ each
- To enhance the online order value through e-commerce by at least 10 % within the two years of implementation of the market plan
- Increase the sustainable consumer base by at least 5 % for the next 3 years starting from the current financial year.
- To install ATMs in the remote corners of Australia with recommendation near Perth and Adelaide to assist the indigenous and Torres Strait Islanders.
- To apply wide marketing campaign of the ATM installation through glow boards or signboards.
- To employ security guards for the ATM machines from the local area through recruitment advertisements in local newspapers and social media.
- To develop software and install in the outlets of ATM which shows a minutes tutorial on the operation of the ATM for the people who are not able to use them.
- To install Braille machine and use disable-friendly outlets which will enhance their experience in using cash from the ATMs.
The market segmentation is an important concept that helps in analysing the different dimension the marketing plan needs to consider while formulation strategy. The market segmentation is described below:
Figure 2: Market segmentation
(Source: Alavi, and Ahuja, 2016)
The geographic segmentation is based on the geographical locations of the consumers. The Global ATM market is standing at 20.58 billion in 2019 – 2020 with expected growth of at least 5.2%. In Australia, there are urban, semi-urban and rural areas. The ATM machines are mainly installed at big cities and semi-urban areas where there is a lot of transactions. However, with the installation of effective WIFI system in rural areas the consumers of rural localities are to be considered as well. The demand of banks of megacities are increasing by 40 % and in rural areas, they are increasing by 10 % so consideration of all the population should be done(Kaźmierczyk, 2019).
Demographic segmentation is performed based on age, gender, ethnicity and background of consumers. This ATMs are rebuilt for common people to give better service and proper data security with simple interface system. The age for which is considered for the plan is between 15- 70 years. The campaign is to be performed in both digital and social and print media so that visibility among old consumer can be increased. According to data of the bank, there is almost 25 % increase in the use of ATMs by people over 50 years of age in the country(Asiedu, 2016).Digital campaign focusing on easy interface system and one-touch system with effective cryptography for protection is to be propagated.
The psychographic segmentation is done based on the lifestyle motivation, values belief and interest of the people. In the cities, the use of ATM is more compared to rural areas. The ageing population in the country faces technological problems when using ATM cards. A statistic showed that population with age over 50 years will increase almost 29 % within the next few decades(Jain, 2017). The middle class is maximum in the number who uses electronic fund transfers and ATMs. The campaign should be targeted mainly based on the needs of the middle class and upper-middleclass population.
The behavioural segmentation is one of the most important components that analyses the buying perception of the consumers based on the behaviour. In the case of B2B mode, the buying pattern of ATMs of urban and rural banks are different. Almost 60 % of ATM users stay in urban and semi-urban areas so buying perception of urban banks will be more compared to rural banks(Aryuni,. The tech-savvy people would opt for ATM instead of going to the bank for transaction and updates of financial records.
Target Market Profile
Consumer insights and target market profile
According to the market segmentation performed above the best target market should be the middle and higher middle-class population of the urban and semi-urban areas. According to recent trends, the use of ATMs has increased by many folds for doing transactions. The market analysis clarifies that almost 80 % of the urban population are actively present in social and digital media. Optimized use of digital marketing campaigns can be carried out(Ibrahim et al., 2018).The percentage of ATM uses in the cities have significantly increased by 40 % and with the paperless transaction is the modern trends consumers are following that trend. However, there are many aged consumers of ATM machine where the complication is the system of withdrawing causes problems for them.Easy one-touch interface system with voice guidance is useful for the target market profile of age 20 – 60 years.
The positioning strategy is one of the most important concepts that helps in orienting the marketing campaign with the actual need of the target market. The positioning is done by focusing on the unique features of the product developed. In the case of the Innovation ATM, the application should be featured in the campaign implementing efficient market positioning(Cassia, and Magno, 2019). The easy user interface system and the encryption software to protect private data of consumer should be projected as premium qualities. For the urban and nationalized banks, this product can be showcased as a high quality and moderatelyhigh-priced item with great longevity and low maintenance cost. Further, the technology up-gradation for implementing cryptographic software should be included in product positioning to convince the bank regarding safety measures.
Figure 3: Product Positioning
Branding of the product is an essential component that is needed in this dynamic and competitive business world. An attractive logo designing is an important aspect that should help in increasing the visibility of the product in the marketing campaign of the ATMs. Catchy marketing slogans like "Put to test they are an automatic winner" can be the slogan of the campaign to attract consumers and banks. Endorsement from highly acclaimed economist and financial planners and technocrats is to be planned to increase branding notion of the innovative ATM(Truong et al., 2017).
In the product range, the product bundling approach needs to be taken and focused during the marketing campaign. The product bundling includes giving a various range of service in one product. The innovative ATM has a strong encryption system with a simple interface. It will make the transaction easy and helps in preserving data in a better way. One-touch card with chips may be used in the machine(Boisvert, and Ashill, 2018). This is to be highlighted in the marketing campaign to establish a competitive advantage.
In packaging optimized use of the resource is to be done to reduce the ecological footprint and promote sustainability. Wooden cases and sophisticatedfibre cases for the display and the depositor and PC core is to be used instead of plastic. This packaging technique is to be promoted in digital and physical media to gain strong brand image. The metal case is to be used for protection as well.
Product life cycle
The product life cycle is the total time of the machine from inventory to its decline. Generally, depreciation of ATMs takes place in 5- 6 years. However, this model is made of aluminum coating and packaged in fiber with easy maintaining software(Patrutiu-Baltes, 2016). The minimum life cycle of the product is for 7 – 8 years with high value for money. This product life cycle is another feature that should be mentioned in the marketing campaign.
Figure 4: Product Life cycle
(Source:Vieira et al., 2019)
The pricing strategies of the product should be formulated efficiently and projected in the marketing plan. For the innovative ATM price, the skimming approach may be used. This includes setting the price and competitive margin when firstintroduced in the market to acquire consumer base. Subsequently, after earning the loyalty of the consumer through quality service moderate price hike can be done with positive brand perception. This helps in increasing profit level and brand perceptions in front of the consumers(Zhu, 2019).The average price of ATMs is between 4000 – 5000 $. So, at first, the price range can be set around the mark and after proving the features the price can be increased in the range of 6000-7000 $. The major focus of marketing in initial stages should be the competitive pricing with high-quality equipment.
In this world of globalization, advertisement is very important to increase the product visibility and establishment of brand image in the market. Advertisements of the ATMs can be done in print media and the digital media. Poster banners and flex containing the tag line and features of the ATM is to be used for advertisements(Heath, 2019). In Television Videos of endorsement by celebrities and technocrats helps in increasing market visibility of the product. The market footprint is directly related to market visibility. Advertisements are to be formulated in such a way that the consumer can relate to their problems and solution that helps in optimizing influence on positive buying perceptions.
Public relations campaign is very much essential to analyse the perspective of publics in views of advertisements. The public opinion is given the ultimate focus in public relationship development. Research of public problems is to be done extensively. For the campaign of Innovative ATMs Campaign page on social media like Facebook, Youtube,Pinterest, Instagram is to be done and regular public interaction is to be performed. Public feedback regarding features of the machine need to be considered first hand for improvement(Tamura, 2018). Direct communication with Public via official pages and website is to be performed for sustainable development. Videos of using the ATM can be uploaded for efficient public relations development.
Sales promotion has to be done with the urban and semi-urban banks as by this process long term contract with banks can be achieved by the organisation. Sales promotion can be done by developing videos and presentation with special features of the machines like encryption system and one-touch card sensor that influence bank officials to perform long term contract.
Personal selling is also an important option where sales executives of the company grow for a promotional campaign in business summits conference meetings. This creates a one to one personal relationship with buyers and helps in establishing a competitive edge. Personal selling through sales executives can be considered for innovative ATMs after the business is established passing through the tough initial stages.
In this modern world of the digital revolution, the e-marketing is the best policy that can help in reaching a wider audience base with a limited amount of financial resource. Technology like search engine optimization can be used to increase web traffic on the website of the organisation. Social media like Facebook You-tube Instagram can be used to influence market perception in appositive way. Social media marketing helps to reach urban middle-class people in avery simple and fast pace. In the opinion of Heath, (2019), social media influence is playing the most important role in influencing the consumer buying perception in recent times that is increasing profit by almost 30 %.
Distribution is one of the most important aspects for that integrated inventory management and supply chain management are very important tools. In the formulation of a marketing plan also the coordination of distributive channels in both digital and print media is very important to optimize resource use and implement sustainable development for the business. In the case of ATMs online and offline distribution channels are to be focused for effective implementation of the business.
Implementation of Schedule of events
The Marketing plan includes a schedule of promotional events that is very important for implementation in a practical scenario.
It should be done within 2 months
It should take 5- 6 months
It should take 6 months to be completed
It should take 3- 4 months
It should take 3- 4 months
Table 2: Implementation Schedule of the marketing plan
(Source: Created by Learner)
Parameters of measurement
The increase in website traffic
Data of social media like Facebook, Youtube, Twitter and Pinterest
Analysis of the data should be done once every month for evaluation of the plan
Critical analysis of the plan and finding out errors and coordination
gap so that mitigation of errors can be achieved
The increment in the revenue rate
The data of sales record and data management can be analysed
It can be done twice a month
The data of revenue should be enhanced by the marketing plan is one track. Sales and marketing manager and finance managers should do it
Increment in contract from banks
Data from the sales revenue can be analysed
It should be analysed once in 3 months
Responsibility of the sales and market mangers
Enhancements of positive feedback in digital media
Data from the website can be taken for analysis
Evaluation should be done once in a month
Digital marketing manager
Increment of followersin socialmedia platforms
Data from the website can be taken
Evaluation should be performed once ina month
Digital marketing manager
Table 3: Evaluation Metrics
(Source: Created by Learner)
The report is a marketing plan that is based on innovative ATMs. The detailed macro and micro analysis have been carried out inside the plan. Internal capacity analysis of the business is also depicted. The market segmentation and market positioning have been done properly. The middle-class population and the upper-middle class are the major targets of the business. The urban nabs are the major target as a percentage of people using ATM in the urban area is more compared to rural areas. The product positioning and marketing campaigns have been decided where digital media has been focused on.
Based on the usage by the population staying in an area it can be suggested that the banks while installing the machines must keep few criteria in consideration. The first recommendation for installing the ATM machine is near to a busy location where cash and other online transaction become vital for the residents. The second recommendation is creating a minutes tutorial for the people who are new to the usage of ATM machines, especially considering Indigenous tribes and people from Torres Strait Islander or at the remote locations where using ATM is rare. The areas where the machines are installed must have proper guiding signs like glow-board or signboards which make the ATM visible from a distance. The currency must be available and none should remain non-functioning at any given time. Strong security personnel must be deployed at the ATM machine which will enhance security and will provide local employment. The disable people must also be catered through the Braille machine and AI assistance for customer satisfaction.