Marketing Assignment: Promotion Planning For Smart Accommodation Solutions
Task: Prepare a research report on marketing assignment presenting a marketing plan for Smart Accommodation Solutions for the development and provision of smart buildings and homes which use low resources and energy in South America.
The development of a marketing plan as discussed in the sections of marketing assignment is essential to ensure that proper marketing and advertising processes are conducted that can allow efficient market growth and visibility. Marketing involves ensuring that a brand, product or service is highlighted in the market, thereby allowing the attraction of a large number of customers interested in buying these products or services. The use of traditional marketing processes such as newspaper advertisements, television ads, radio propagation and more has contributed to the growth of several worldwide businesses over the last decade. On the other hand, the digital marketing processes have experienced significant growth over the last few years and the high number of people using social media and online communities contribute to increased opportunities for product sales and customer attraction. This study focuses on the development of a marketing plan for Smart Accommodation Solutions, a brand involved in the development and provision of smart buildings and homes which use low resources and energy in South America.
2. Product/Service Description
The brand involved in the study is the Smart Accommodation Solutions which deals with the provision of smart buildings and residences. Therefore, it can be stated that the service involves smart building and home provisions while the product can be stated as the homes or buildings that are being developed. Smart buildings are mainly energy efficient and are highly environmentally friendly. The developments are made via the use of sustainable materials that do not contribute to negative effects on the environment while maintaining the proper quality and safety conditions of the buildings and residences involved. These high-value developments could indicate the use of BIM (Building Information Management) which allows high-value construction and development processes without affecting brand growth and while maintaining efficient planning processes (Liu et al. 2019).
BIM also provides a virtualised view of a plot of land for development, designing and more, thereby contributing to the development of these energy-efficient and eco-friendly processes or lifestyles (Kocakaya, 2019). The brand will also focus on the use of modernised technological solutions and various control technologies such as the Management Information Systems (MIS) can be efficient in conducting efficient planning processes (Abu Amuna et al. 2017). Additionally, it also allows planning to ensure that customers can gain high value from the services being provided, which contributes to an overall increase in brand visibility and market attraction.
The primary mission of Smart Accommodation Solutions involves focusing on maximizing user value by designing energy-efficient, environmentally friendly, comfortable, and high-performing control technology solutions. This can be achieved via the use of MIS and BIM. While MIS can help to plan out and manage the process of development as well as brand operations for developing energy-efficient and environmentally friendly buildings, the BIM can be used for proper developments that ensure comfort and satisfaction for customers (Mashwama et al. 2020). The development of residential buildings, commercial estates, duplexes and more can also greatly benefit from these technologies as they allow management and control processes for development and management operations.
The prime vision of the Smart Accommodation Solutions brand is to provide a unique user experience by creating value from the products that they develop for their customers. This value refers to the usability of the product or service, the flexibility of operations, performances and impacts on customer mindsets. The provision of high-value services contributes to increased customer satisfaction and higher levels of loyalty towards the organization (Veloso et al. 2020). Furthermore, it ensures a focus on quality service rather than profits and thus has a positive impact on the brand and its long term sustained growth opportunities. The brand has a focus on quality rather than prices which is efficient for long-term growth and achievement of goals.
5. Objectives of the study
This study aims to comprehend the importance of marketing smart building development plans as offered by Smart Accommodation Solutions. It deals with the various operations that take place within the development plans. The significant objectives of this study are as follows:
• To determine the factors that impact the marketing of smart buildings.
• To analyse the benefits of smart buildings and their influence over the environment.
• To evaluate the strategies of marketing involved in smart building accommodations.
• To define the stages of marketing that are to be employed for the accomplishment of effective services as untaken by the concerned company.
6. Target market and group identification
6.1 Application of STP Model
Smart Accommodation Solutions is a construction company based in South America, that deals with the provisioning of residential buildings and areas. The brand is initially set to operate from Lima in Peru as the population in Lima is around 10883000 which is quite high and thus leads to efficiencies in gaining access to a higher number of customers. In the post-pandemic condition, as the world market is going through several changes, it has become necessary for companies to change their marketing strategies accordingly (Coca, 2021). Thus, determining a target market, establishing the customer bases or identifying the required groups for business has become necessary as well. Some several models or theories can be applied successfully for establishing a strong market position of a company. The STP model is one of them, and it provides an agile process of transformation in the marketing strategy of a company, thus making it easier to deal with economic changes.
Figure 1: STP Model
(Source: Agostini et al. 2019)
The abbreviation of STP refers to three basic activities namely segmentation, targeting and positioning. The model claims that if the implementation of these processes can be conducted successfully, it will become easier for every company to cope up with the current market situation (Agostini et al. 2019). The implementation of the model has become more popular because of constantly increasing mature markets, the diverse customer needs and the ability of the companies to reach niche segments. The components of the STP model can only be implemented successfully if a detailed analysis of the logistics of a company is done regularly compared to the market positioning of the rival companies as well.
The first and fundamental component of the model is segmentation, thus, the entire process starts with dividing up the entire market into several distinct and identifiable groups. The groups are determined by their distinguishable and similar characteristics, responses or needs. Several criteria can be used to make this distinction, such as the demographic, geographic, psychographic and behavioural variables. The Smart Accommodations solutions are focused on the provision of high-quality energy efficient buildings developments and residences. Therefore, in order to gain maximum efficiency, the brand needs to focus towards selecting demographic market segments. If the strategies of the rivals are evaluated, another important market holder named Somague-Engenharia also maintains and decides their marketing strategy based on certain criteria that helps them categorizing the entire customer base. Selection of people belonging to the age group of 21 to 60 can be efficient as these groups of people are more likely to be employed and have finances for the gaining access to the services provided by the Smart Accommodation Solutions brand.
The next component of the model involves targeting. The basic aim of this activity is to create a comprehensive marketing program by targeting an uncovered segment and turning that into the primary focus of the marketing. The market segmentation and targeted segments are highly recommended to be distinct, accessible, measurable and profitable for the business of the company (Rogers, 2018). Therefore, the districts of San Isidro, Surco, La Molina and Miraflores can be selected in Lima, Peru as the target markets as they offer efficient opportunities for the brand operations. All these districts have high population levels as well as salaried individuals and families which can contribute to high efficiencies in brand growth and long-term goal achievements. Companies like Salfacorp or Cyrela Brazil Realty also focuses on selecting a target group of customers in the marketing decisions.
The last component of the STP model is positioning which refers to the position of a company within the specific market. As Smart Accommodation Solutions does not have high brand visibility, the market position is expected to be low. However, the continued provision of high value services and proper targeting and segmentation processes can lead to improved brand position. The ability of the brand to convince and bring in customers also plays a huge role in brand positioning and thus proper branding; provision of service offers and more can lead to high market position for the brand.
6.2 Selection of target market
The selection of the target market is based on the scrutinization of several factors associated with the market of a company. as Smart Accommodation Solution is a construction company that deals with the building of residential places and buildings, two factors mainly become important in their business, i.e., profitability and sustainability. The company primarily focuses on customer preferences and choices and also, saving energy in their projects (Pan, 2019). However, as per the above model, the city of Lima in Peru was selected as the target market with specific focus on operations in districts such as San Isidro, Surco, La Molina and Miraflores. Customers belonging in the age group of 21-60 years and working at a pay scale of around 100K or higher is the primary choice of market segment within this target market. The lifestyle status of the customers, i.e., if they are married or single, also has an impact on the overall market condition of a construction company.
6.3 Selection of specific market segment or group
For Smart Accommodation Solution, it is ideal to select a group as their primary target where the earning rate is higher and most of the customers belong in the middle age group (Rodrigues, 2020). Residential places are today apartment centric urban living mostly. The preferences of amenities like swimming pools, gymnasium or community clubs are increasing day by day and thus, it is fruitful for the company if the targeted market segment accommodates themselves with these trends. The STP model above signifies the selection of market segments based on demographics can be efficient as people belonging to the age group of 21 to 60 are expected to be employed or self-employed leading to opportunities for using the services provided by the Smart Accommodation Solutions brand.
6.4 Brand positioning
Smart Accommodation Solution is working in the market of South America where the main rivals of the companies include strong market holders like Swiss Contact and Capeco. It is extremely important for the company right now to understand its current positioning and identify the direct competitors based on target market groups and segmentation of the rest of the market. Examining the provided values and a constant evaluation of the company's logistics in comparison with the rivals' is necessary. The company should also be agile with the changes that are occurring in the post-pandemic market throughout the world.
7. Competitor Analysis
7.1 Major competitors in the target market
Competitor analysis helps in focusing on recognizing the market actors positioned in encroach on their opportunity and isolating very competitors’ activity strengths, substantive weaknesses, product offerings, missed opportunities and market dominance enabling them to stay updated with product offerings and market trends. The competitor analysis helps in revealing pertinent data about business opportunities, market saturation, and industry optimum practices (Key, and Czaplewski, 2017). The major competitors should be targeted knowing their strengths and how do they leverage them. This would help smart accommodation solutions develop their technological applications in the residential complex in Peru accordingly for attracting adult customers respectively. Within the ddistricts of San Isidro, Surco, La Molina, Miraflores the smart residential complex has been developed so that smart solutions have focused on such region. To deal with major competitors in the smart appliances paradigm it requires the best technology, market reach and the best price that make the market coverage better and reach an optimum height in sale and height The technology solutions developed should be designated to outrank their competitors for gaining a customer base of young and senior adults as they prefer smart solutions. Samsung, LG being the highest supplier alongside several regional applications provider and their strength and their strategy should be assessed so that smart accommodation solutions can capitalize it. In Peru, Lima region, the customer base has been targeted that may help Smart accommodation solutions work better than them and outperform their competitors.
7.2 Application of the Porter’s Five Forces Model
The five forces model helps the organization in understanding the determinants that impact their profitability within the business industry that helps them in making informed decisions
Supplier power: This is an evaluation making it easy for the suppliers for driving up the prices. This is being steered through different suppliers in Peru for every necessary input; uniqueness in the product and relative strength and size of the supplier; and cost to switch from an individual supplier to another (Ghadge et al. 2017). This would help enable the supplier to make the smart appliances solutions being readily available in the market.
Buyer power: This is revered as an assessment for making it easy for the buyers for driving the prices down. This is steered through different buyers specially the young one that are available in the smart appliances for the residential complex smart solutions. This depicts the importance of every individual buyer in the organization as well as the cost to the buyer to switch from one supplier to another supplier. If the business just possesses a few powerful buyers, then they will be generally able in dictating the terms.
Figure 2: Porter’s Five Forces
(Source: Pervan et al. 2018)
Competitive rivalry: This is revered as the main driver depicting the capability and number of competitors within the business market. Several competitors offer undifferentiated smart appliances products that in return would help in reducing the market attractiveness (Zhao, et al. 2016). This should be capitalized by the smart accommodation providing the best smart products so that they can outperform their competitors in the South America region.
The threat of substitution: This is developed as the close substitute products that exist in the Peru market; it enhances the likelihood of consumers of south American nations shifting to the alternatives responding to enhancement in the price (Pervan et al. 2018). This helps in reducing both the attractiveness and power of suppliers of the market as there are several substitute products available in the market that customers base their preferences on.
The threat of new entry: Profitable markets help in attracting fresh entrants that result in eroding profitability. The position of the business may be impacted by the people's capability in entering the market. Until and unless incumbents possess powerful and durable barriers to entry, it will impact the profitability declining to the competitive rate.
7.3 Improving competitive advantages using marketing
Companies will be trying to elevate the competitive advantage in Peru to develop the residential complex solutions improving their competitive advantage against their competitors. There can be fewer competitors in Peru in the initial period that would help the company to foster the south American region. Alongside it helping the business in tapping the market for establishing early brand recognition early for developing the smart residential buildings.
This requires a proper marketing strategy to ensure the proper availability of products within the consumer reach. The market strategy should understand their customers ‘demands and their needs so that business should strategize their marketing plans to focus on the huge consumer reach (Kotler et al. 2016). The company should be looking for the niches in point of view of customers that may be under-serviced will help in providing the companies with a competitive market advantage. There may be generally fewer competitors, alongside helping the business in tapping the market for establishing early brand recognition early.
Several companies generally use common value propositions like service levels, pricing levels, brand recognition, quality, etc. for creating a competitive advantage. Companies should also provide a unique experience like providing unique customer service, understanding every small need like packaging, labelling etc. Rewarding the behaviours that Support Corporate values and mission helps seek for rewarding the top performers within the organization as well as acknowledge the consumers who have been the best buyers that rewards the behaviour with several benefits (Davcik, and Sharma, 2016). By understanding the Footprint of the ideal customer and targeting the right consumer, being aware of the purchasing procedure, that are involved in decision-making, the required information and the time, so that may help the sales team for winning the business and help in retaining the lifelong customers.
8. Branding processes
A systematic approach that is employed to create as well as promote the brand of a particular company is known as the branding process. It is one of the most effective forms of marketing and business plan development. It impacts the success of the concerned companies. Branding helps in creating an unforgettable impression on the consumers about products or services that are promised to them by a certain company (Chen and Smith, 2018). It helps the customers to have a vivid knowledge about what to expect from a given company. It also provides proper motivation and direction towards the business which further helps in the expansion and attracts more customers. In simpler words, branding provides value to the existing products and services of a company like Smart Accommodation Solutions by enabling a communication network among company operators and consumers. Several stages take place which collectively forms the branding process starting from avid researching to the development of significant strategies and designs followed by proper execution of the plan within the market (Tan, et al 2021). These strategic approaches or plans and designing methods are utilized to create effective and notable brands that can catch the eye of the consumers, thereby allowing more sales and increasing company profits. Some of the methods to ensure proper branding are the utilization of logos, like the company of Amazon. The logo of the company shows an arrow pointing from ‘A’ to ‘Z’ which suggests that anything can be found on their site and help people with better engagement in online shopping. Few other methods involve using catch-phrases which attracts buys or customers to invest in a particular company like KFC whose motto states, “We Do Chicken Right” or Nike with their “Just Do It”. Various jingles and mascots help in improved brand promotion. Not only does branding provides a good impression about the respective companies but also offers certain insights about what can be expected by their targeted consumers. Each brand logo or tagline is different of others which expresses the uniqueness of a particular company.
The four important stages of branding as mentioned earlier are research, strategy, design and implementation. In the research phase, a gathering of information about a particular product or service that is to be developed is accomplished. The collected data are then analysed to acquire suitable outcomes based on which strategies and designs are created. This information mostly focuses on existing industry or market, competitors and target audiences (Read and Brown, 2020). The second step or strategy involves devising important plans of action based on the research findings. This phase provides rallying points regarding the brand values of the business and offers insights for the execution of the plans. The design phase takes place to deliver the strategic plans that are developed previously (Kotler et al. 2016). In simpler terms, designs help in providing brand value and brand identity into a practical solution. This is the part where improvement of services and products is done before launching them into the market. Lastly, implementation suggests the disclosure of brand identity into the world and is made available to the consumers (Zha, et al, 2021). The implementation phase deals with the launching of the brand into various marketing channels for more people to take an interest in the products or services that are being offered to them.
9. Brand Equity
Brand equity refers to the provision of value endowed products to customers and the development of a strong brand. Strong brands have greater financial market returns, greater support and trade cooperation, low vulnerability during crisis and more. It also ensures higher levels of loyalty from its stakeholders as well as investors and customers leading to continued operations and maintenance of goals during crises (Kotler et al. 2016). Smart Accommodation Solutions are focused on providing high-quality services and thus are expected to gain high levels of market attraction. This, in turn, can allow the brand to develop brand equities and attract a large number of investors, leading to the development of a strong brand that can work efficiently during crises due to the availability of funding from investors. The implementation of the brand value chain is efficient in measuring brand equity and implementing various operations and actions that can be beneficial for long term brand growth and efficiency within the market. The value stages include investments in a marketing program that operates alongside efficient program multiplier implementation, thereby contributing to positive customer mindsets. The Smart Accommodation Solutions brand can implement high-value product provision processes and needs to focus on program multipliers such as excellence, relevance and distinctiveness to increase the efficiency of the service provided. Similarly, the customer multipliers are implemented alongside these customer mindsets to develop high brand performances. The customer mindsets involve the awareness, attitude and activities of customers while customer multipliers involve the organisation tracking customer size and profile, competitive reactions and more. These implementations lead to the development of high brand performances in terms of high market shares, cost structure, profitability, expansion and more.
Figure 3: Brand equity and value chain
(Source: Kotler et al. 2016)
Various market multipliers such as market dynamics, growth potential, risk profile and brand contributions can also be implemented alongside the brand performance value stage to achieve high shareholder value. These high shareholder values refer to the high stock prices and efficient market capitalization of the brand contributing to its growth and market visibility.
10. Marketing Strategy based on the application of Marketing Mix
The marketing mix can be stated as a marketing tool that contributes to efficient planning and strategic action. The 4Ps of Marketing Mix has been taken into account as it involves strategic planning based on four factors which include the Product, Price, Place and Promotion which are essential for the marketing processes for any brand (Pepels, 2021). The strategic actions that can be taken by the Smart Accommodation Solution brand have been presented as follows.
Product: The product provided by the brand involves high-value buildings and residences for positive lifestyle conditions of people. The provision of high-quality services is the primary goal of the Smart Accommodation Solutions brand. Therefore, no major strategic changes are required here and continued focus towards quality service provisions can lead to positive impacts on brand performances and improved growth opportunities.
Figure 4: 4Ps of Marketing Mix
(Source: Pepels, 2021)
Price: The brand is focused on the provision of high-quality services at standard prices. However, focusing on service provisions at lower costs can help to increase product sales. The cost reductions can be achieved by decreasing overall costs incurred by the brand during development processes and the use of MIS (Management Information System) for planning developments can be efficient in decreasing these costs. Furthermore, as per Liu et al. (2019), the use of BIM for building developments can also ensure the prevention of unnecessary expenses during development and construction processes, thereby ensuring high budget savings and profits. Place: The Smart Accommodation Solutions brand is currently focused on operating within the South American market. However, housing and property services are in demand in all countries worldwide and are expected to further increase over time along with the price of real estate and property. Thus, expansion of the brand into major developed countries such as the UK, USA, Australia and more can contribute to an increase in brand growth. The expansion of the brand into multiple countries require high finances but can also be highly profitable over a specific time frame.
Promotion: Promotion is the most essential factor in the marketing process of an organisation and a lack of promotion is the primary issue leading to large scale brand failures. The use of proper advertising processes as well as influencing processes are essential in proper brand promotion. The advertising processes can be achieved by using both offline as well as online methods. The offline advertising methods mainly include the use of newspapers, magazines, flyers and posters for promotion while the online methods refer to the use of social media, websites and communities for the propagation of services provided by the brand along with the quality and cost of these services (Bayer et al. 2020). Social media is used by a large number of people worldwide and thus the brand can attract a high number of potential customers using these platforms. The expansion of the brand into different countries can further benefit alongside the use of these social media platforms. Additionally, requesting endorsements from celebrities as well as various influencers can also lead to increased utilisation of the brand services by local customers.
11. Distribution of products and services
Distribution channels are revered as the effective way to promote and distribute the products to ensure their proper reach to the customers. The distribution medium helps in providing the right availability of products at right time and the right place. Distribution channels may vary based on a specific manufacturer product variety and their sales targets (Terenina et al. 2019). Therefore, it is very vital to select the right and accurate distribution channel. Several factors should be considered by looking at the detail of a company so that it helps in determining the right distribution method being ideal for-profit generation through value addition, sales, and customer reach by analyzing market characteristics, competitor characteristics, business characteristics as well as Product characteristics. The focus for any business is on bringing the product into the market and making it available to the customers by procuring a distribution channel or route. The link between the producers and the end customer is generally intermediaries, like retailers, brokers, or wholesalers. The intermediaries are defined as the natural individual or businesses. Distribution mediums impact the prices of goods and their positioning in their respective markets.
The Distributions process or mediums ideally, must be instilled in such a way that should be limiting the number of stops, or with terminating ends for the designated product before reaching the end consumer. A distribution channel should be adequately effective and efficient. Distributors help in lowering the market transaction cost by capitalizing on the benefit of scope and economies of scale. Distributors help in reducing the information costs for the marketing transactions. The distribution techniques also help in lowering the costs of trade by recognizing the supply and demand conditions (Bricci, et al. 2016). Distributors also help lower the cost of trade by solving the asymmetric information problem.
For selling smart appliances products in the market there is a requirement of a strong sales channel. It is generally a strong sales medium and distribution network for providing the services to the end-users or customers. But in the present conditions and past some years the indirect sales generally include the sale of smart appliances by both offline and online modes (Li et al. 2019). Indirect sales mediums or third-party service providers procure a major portion of share in the market for smart appliances. Offline sales channels generally comprise third party teams such as wholesalers, retailers, cellular network carriers, and value enabled resellers. Smart accommodation solutions should also try to connect to the indirect channel of distribution that would help in reaching the potential customers giving them potential benefits. The distribution channel should be considered effectively. The direct distribution channel can also be considered by smart accommodation solutions as it does it consider any utilization of any intermediaries. The producer and manufacturer of the appliances would sell straight to the end consumer. It is revered as a direct form of distribution that is typically utilized by the manufacturers or producers of expensive and niche goods and items that are perishable.
12. Marketing goals and possible improvements
To ensure proper reach to the consumer and maintain the company's sales productivity marketing strategy should be designed accordingly. As the landscape is continually developing and evolving with fresh strategies and tactics being created continually. As marketing itself is evolving, it designates the requirement or sense that the business must also evolve in the environment.
Building the Target Audience
As soon as the business know their ideal customer is, then they can initiate building their targeted campaigns as per their audience’s interests. By utilizing effective keywords, they can search and design advertisements that would help in explaining the business products in solving the problem of the audience.
Using social media
By maintaining the account accurately and up to date is a must, if there is any fluctuation about the business then social media must also reflect it. By instilling continual competition is another great way of improving for engaging the concerned audience. The business should be creative and give rewards to the ideal customer as they need. By interacting with the audience in a professional way alongside providing that significant important personal touch would help customers retain. There should be conversations, answering questions and building a community.
Focusing on Top Customers
Before focusing on the most remunerative 20 per cent must help in maximizing the whole sales revenue. Rather than spending very much time trying in pleasing everybody, businesses should continue to strive for building relationships that would last with their top customers. Nevertheless, the other 80 per cent should not be neglected and businesses should be concentrating on making their repeated customers engaged and happy.
Utilising tested and existing techniques
Several Business owners have resulted in an outdated style of thinking when it results in marketing. Unfortunately, some of the old techniques have reflected in the minimal results and it factually results in hurting the overall marketing plan. Being present ‘in the loop’ where the digital marketing solutions is concerned is factually a fantastic plan of action. By researching distinctive options can result in exposing the fresh ideas of the business that may result in saving the campaign from the resultant stale. By maintaining a continent schedule, there should be posting of continual quality content and most significantly interacting with the customers. Businesses should not be disheartened because their strategy does not work, as trial and error are depicted as a big portion of every marketing success. By implementing proper steps for correcting such errors, there should be prevention for following the same mistake again and again. With Overtime and providing the right message to the correct demographic, the business will get to see some good results.
To ensure efficient achievement of management goals and marketing opportunities the following actions can be further taken into account. • The brand needs to focus on small scale project developments alongside their service provisions as operating in these small-scale developments can help to develop a portfolio or sample of their operations. This can contribute to increased visibility and an idea of the performance quality and service provisions by the brand, thereby leading to future opportunities and potential growth.
• Customer referral incentive programs are also widely used by a large number of brands to gain access to a larger number of potential customers. This process can also be applied within the Smart Accommodation Solution brand as it has positive impacts on increased service. Further, the involvement of the brand in small scale projects can also be further beneficial along with the referral incentive programs as a large number of people are more inclined to be involved in small scale projects than larger ones.
• The brand also needs to focus on service provisions for commercial buildings rather than just on residential building developments.
The recent COVID 19 pandemic situation has led to the loss of a large number of jobs and thus the focus on businesses is increasing at a steady rate. Thereby, the focus on developments and projects for these business-building developments at low cost as well as energy-efficient services can have positive effects on continued brand operations. The advertising of these services can further allow increased growth of the brand and higher opportunities for growth.
A marketing plan is revered as the most effective way to gain market coverage and reach potential customers successfully. There is a need of showing a marketing plan as it would help in designating the requirements as per business and products that would help set the strategy accordingly. It helps in setting the plan and team to set the demographic needs, cultures, interests and assessing the values and strategy of customers that would help in depicting the understanding of the customers. The reports have presented the analysis of customers, different market models, competitor analysis, right distribution channels, and an appropriate alternative strategy to devise the right marketing plan.
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