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1.

Situation Analysis
1.1 Current General Situation

Starr was found in the year 1950, as wholly-owned by an Australian company. It started in a small scale, where it contracted to manufacture leather soccer and rugby balls for a multinational company. In the year 19 0, it gained its reputation and started to manufacture and sell soccer and rugby balls under the !Starr" brand name. #he Starr brand name $uic%ly earned a national reputation for its durability and for $uality of its leather balls which is e$ual to other top brands. Starr has ne&er been well recogni'ed, since it has not won any contract to supply balls for ma(or national competitions. )ut howe&er, in the year 199* Starr won a fi&e year contract to supply match balls to the premier professional soccer league in Australia.

As an e+traordinary increase in the demand for bas%etballs, this has become the fastest growing sport in terms of participation in Australia. Starr was $uic% to respond to these trends by e+perimenting its synthetic leather bas%etballs. #he basic idea behind this was to de&elop a ball with synthetic leather construction ,the casing- and rubber ball surface. It succeed in doing and as the most stri%ing feature of these balls is the durability of the surface grips, which lasts twice as long as regular rubber or synthetic leather balls according to the independent laboratory tests.

Starr became &ery successful because, unli%e other synthetic balls, Starr balls can be made in &ariety of colours and designs. #hese Starr balls were nic%named as Hybrid because they can be positioned as rubber balls ,appearance-, synthetic leather balls ,construction- and also the uni$ueness of it. #hese balls come in &arious range such as. si'e-5 for children, si'e-/ for youth and si'e- for standard adult. 0ini- bas%etballs can also be made and these are &ery suitable in terms of gift items.

So as we ha&e mentioned abo&e this is the current situation of the company and it is important for us to understand identify the strengths

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,wea%nesses, opportunities 1 threats that we would ha&e to face from these at present as well as in the future.

1.2 SWOT Analysis

S23# analysis is an assessment of the strengths and wea%nesses, en&ironmental opportunities of and threats to an organi'ation. ,)enson, Standing, 400*- An organi'ation has to e&aluate the criteria mentioned abo&e before they proceed with their business. Strengths and wea%nesses of an organi'ation e&ol&e from the company itself while the opportunities and threats are created from the e+ternal en&ironment as the diagram blow depicts.

1.2.1

Strengths

Strengths, being one of the internal s%ills that e+amine the controllable assets of Starr should be measured and integrated into Starr company mar%eting strategies. #hese strengths should be properly identified, thus it5s crucial.

6ow unit cost of production. #herefore, Starr will find it relati&ely easier to produce more bas%etballs in order to meet the demand.

#he product is a modern, efficient product 7 this will lead to channel support, brand awareness and positi&e business profile.

8ood re&iew from the customer base towards the product. #his will affect the reputation of the company positi&ely and it will promote the product.

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#he $uality and safety issues of the products gi&e consumers the confidence in buying Starr brand products. #his is indeed a strength for the company.

#hese !9ybrid" balls can be made in a &ariety of colours and designs, and also these balls are a&ailable in different si'es for different age groups, which ma%e the 9ybrid ball &ery uni$ue and creati&e.

#he $uality and safety issues of the products gi&e consumers the confidence in buying Starr brand products. #his is indeed strength for the company.

1.2.2

Weaknesses

#he frail and ineffecti&e attributes which creates drawbac%s in the organi'ation

#he frail and ineffecti&e attributes which creates drawbac%s in the organi'ation because they ha&en5t e+perienced about ma%ing )as%et ball5s before. #he company is not &ery well recogni'ed, since it has won only one contract to supply balls to the premier professional soccer league in Australia. #hey don5t ha&e a good will regarding producing bas%et balls.

1.2.3

Opportunities

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:+ternal condition which are fa&ourable to the organi'ation and which could be used for the de&elopment of the organi'ation Since Starr bas%etball is uncommon brand name, it has the potential of attracting a large amount of customers. 0ore and more people are becoming interested in ha&ing healthy life. #herefore the Starr bas%etball will ha&e good demand. It is a %nown fact that sports ha&e &arious benefits therefore it will be easier to con&ince the customers to purchase it. )as%et ball participating le&el has been increasing for past few years, which shows the future potential demand for the !9ybrid" ball. ;ompany has to e+pand their mar%eting and selling range in the field, in order to cater more demand for its 9ybrid balls. Starr has the opportunity to differentiate its products in order attract the different consumer beha&iours and fa&ours. Stic% consumers by ad&ertising &ia retail sellers and can also target young consumers by using popular icons for the product mar%eting. ;an gi&e a competiti&e price than the other competitors to promote its 9ybrid ball by gi&ing special discounts.

1.2.4

Threats

:+ternal conditions which are unfa&ourable to the organi'ation and which has the capacity to hurt progress

Major ran!s "an rea"t #ier"ely $ 3ther brands could get affected if the new <Starr bas%etball5 becomes a threat to them and if their sales are impacted. Such occurrence could result in ma(or brands retaliating through similar designs with large in&estments in #.= commercials and bloc%ing shelf space in the garden stores.
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%o arriers to entry $ #his means that any firm could come into the mar%et and open up a similar business which will reduce the e+isting demand for Starr bas%etballs.

>i&al companies can easily identify and copy the formula, so the Starr ;ompany has to put of some sort of patent to protect this.

?ounger shoppers are unaware of the Starr brand and thin% of it as an o&erpriced moisturi'er compared with the more familiar national brands.

#he regular brands are cheaper and are bought by families and hea&y users, so the Starr ;ompany has to do a lot of promotions to attract its sales.

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2.0 Marketing & 'inan"ial O je"ti(es An! Strategies

Starr ;ompany being a successful manufacture in the industry of leather sports ware and e$uipment is now adopting them towards a new trend which is to mar%et their new product. In order to capture the mar%et and position their company firmly in this new sector Starr ;ompany has set some &ery effecti&e ob(ecti&es both mar%eting and financial.

2.1

Marketing O je"ti(es

;reate a loyal customer base of at least 100 sports clubs and schools within the first year. ;reate awareness among the consumers and public who are the target mar%et about the products appro+imately around @0A during the first year. Bosition our brand <)ounce and )uy5 as an affordable, uni$ue, $uality and wide ranged products in the mar%et by the end of the first year.

2.2

'inan"ial O je"ti(es

#o achie&e a profit of C 40,000 for the first year.

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# o achie&e a repeat purchase rate of 50A by the end of the first 14 months. #o attain a target sales &olume of 4 000 for the mainstream product within this year

2.3

Strategy State)ent

Starr ;ompany entering the new mar%et trend of fundraising is a totally di&ersified field for the company. #herefore the company is mainly focusing on choosing their target mar%et, allocating the resources they need and strategies to position their products in the fundraising sector.

Target Market Starr ;ompany being one of the famous sports ware production companies follows the <8eneralist5 mar%et approach, where the company pro&ides many sports ware products to many target mar%ets. Starr ;ompany has a wide range of products which they intend to mar%et for &arieties of groups. #heir target mar%ets would be school classes li%e the primary and upper grades, sports clubs consisting both (unior and senior clubs and other special interest clubs li%e the >otary and 6ion5s ;lubs.

*ositioning #he main goal of Starr ;ompany in the sporting sector is to position their company in a stable way in the mar%et. #his is targeted by the company by in&enting products which are attracti&e and common. Starr5s products are fancy and durable. #hey ma%e sure that their consumers get &alue for the money they spend on their products e&en though they are &ery cheap and bought for a good cause. Since they are sports products, Starr ma%es sure that they gi&e a wide range of products to their target mar%ets so that they can widen their customer base day by day. Starr5s products are not only distinct but also of good $uality which their

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customers can get for a &ery low price which is affordable by all range of consumers. Among the following ways of positioning their company in the mar%et, Starr ma%es sure that their products are always a&ailable for their customers. #hey also pro&ide their customers with after sales ser&ices li%e free deli&ery, etc. #hese %inds of strategies followed by Starr ;ompany enables them to position their products in the mar%et.

+esour"es Since Starr has a wide range of products which they pro&ide to different mar%et segments, they are indeed in need of resources to maintain and to mar%et their products in a &ery cost effecti&e way. #he company is in need of a warehouse to store their products which has to be safe and strong. )ut they do obtain an ade$uate warehouse at present. Since their target mar%ets are in different and far away locations, they need ade$uate transport ser&ices to distribute their products. #his can be fulfilled by purchasing few truc%s for the company. And in order to sell these items Starr ;ompany has to recruit some eligible representati&es to mar%et their products among their targeted segments.

3.0 Marketing Mi, Strategies

3.1

*ro!u"t -esign An! -e(elop)ent

.ran!ing
#he nic%name of these rubber balls with synthetic casing was !hybrid" so we ha&e to thin% of a name for this ball before it tested in mar%et. Starr Chaser&Starr Cat"her because of brand customers can differentiate products and customers rely on brand names. #he other benefit is that the company can protect their product $uality, design while customers can identify the particular product from others.

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In ma%ing a logo we ha&e to consider factors li%e bas%etball, durability, accuracy, design and the o&erall $uality which will include in the particular product. So that customers can easily identify the product from the logo e&en without the brand name. 2e need a logo. A logo can do a big part in differentiate the product from other products. A logo allows customers to identify the particular product with the particular $uality or design.

Slogan
Slogan is a sentence or a phrase that which represent the company in promotions and it gi&es the idea to customers about the company what is there beha&iour for customers.

Be a star get Starr- the reason for choosing this slogan is to attract
the potential target mar%et to purchase the new !9ybrid" balls. #his slogan means if you want to be a star then get Starr bas%etballs.

*a"kaging

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/n here this ne0 pro!u"t is a(aila le in )any "olours.

*ro!u"t Manage)ent

3&er the time we hope to de&elop this ball and impro&e its $uality and add new features. #his can come out with different si'es, designs, colours and with more accuracy and durability.

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3.2

-istri ution Strategy

In general the famous top brands of sportswear and e$uipments are imported by their head companies in o&erseas. #hey use their additional outlets as well as self-regulating distributers whom could do their sales in the way they wish. At present Starr has to get more response, attention and recognition among the consumers. 9ence we could ta%e the sport e$uipment stream in this area, which we could ha&e, potential competiti&eness among the brands li%e Buma, Di%e, >eebo%, who are doing their trading strongly e&en through the mainstream 0edia. )ut when it comes to )as%et )all, #here are few well %nown brands in the mar%et as Spalding 1 2ilson. )ecause of that Starr has an opportunity here to build their identity and capture the mar%et portion. Starr is hoping to empower their subsidiary agents to ad&ertise in the territory. ;ompany has decided to maintain three supplementary wholesaling stores under the company5s administration. #hese stores will be empowered with a defensi&e restriction to a&oid the competition among each other supplementary store which is under Starr ;ompany. And they will ha&e the right to Ad&ertise and promote their brand in their own way according the fluctuation of the mar%et demand. #hey will coordinate the company with retailers for better understanding of the mar%et and to %now what needs to be done to fulfil the customers and gain profit to Starr ;ompany. Starr has to target some non-affiliated stores in Berth area. #hese independent stores will be gi&en some mar%eting support to sell Starr products and also they mustn5t buy all the products that we pro&ide to sell them. #he company will pro&ide also some ad&ertising support to them as banners, posters, .etc EE. . :+cept these independent stores, the company will attach three chain stores to act as retailers. each store has few outlets in Berth area.

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-istri ution #lo0 o# Starr in *erth

S#A>>
2hole sailing stores

Subsidiar y Store

Subsidiar y Store

Subsidiar y Store

Donaffiliated

Affiliated >etailers

361

364

36F

36@

361

364

36F

Girect Ad&ertising

;ustomer

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3.3 *ro)otional *lan

*ush O je"ti(es

;reating awareness among intermediaries about Starr 9ybrid and achie&ing or encouraging 40A of the well %nown intermediaries to supply our product to the customers within one year.

Ac$uiring 10A of the intermediaries to e+clusi&ely sell our product.

Increasing bul% purchase by F0A within one and half years.

*ush Strategies

2e can gi&e an additional discount to each fundraising pro(ects which is capable of generating sales more than C 5,000 e&ery wee% which will depend on the sales re&enue.

#he fundraiser is in&oiced at 50A of retail price.

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Sales agents will be granted a commission according to the percentage they ha&e sold through the fund raisers.

2e shall organi'e training programmes on Bersonal Selling for the sales agents.

#he sales agents will be &isiting the clubs 1 societies which we thin% are interested in fundraising pro(ects. If the first few pro(ects are a success word-of-mouth will be a good publicity.

*ull O je"ti(es

;reate a potential image of our product in our target mar%et within one year by 50A. :ncourage purchase by young age group ,15-40- by 40A by the end of one year

*ull Strategies

#he consumer can get a damaged product replaced within a wee% from the day of purchasing.

#he consumer will not ha&e to spend the time in a store loo%ing for the new products, since the fund raisers will be mainly focusing on Goor-to Goor selling.
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9a&e inno&ati&e consumers.

and

uni$ue

ad&ertisements,

to

attract

the

)usiness cards with the contact information will be gi&en to the fund raisers to distribute among the consumers. It will include our hotline number, 2ebsite 1 email address. #he website will be launched in order to create awareness about the latest products. #his way the customers can order products through the fund raisers or directly through the hotline.

3.4 *ri"ing Strategy

Market *enetration 2e e+pect to be using this pricing strategy for the first * months of operations because these !9ybrid" balls are new to the mar%et, so it is an important strategy for building up a mar%et share with a customer base of @A within the first * months. 9owe&er, this strategy will not be suitable for long due to the rising costs. Hor this reason we would switch to Bremium pricing or 0ar%et s%imming after we attain a stable position.

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Market Ski))ing Bremium pricing is a necessary pricing strategy to be adopted for many reasons. 3ne being that there would be a large number of initial costs which we would ha&e to co&er up for and if we continue to use mar%et penetration, which we would not be able to do so. In order to meet the rising utility costs each month according to the hours consumed, Bremium pricing would ha&e to be adopted.

Si1e 2$3

Cost o# the pro!u"t Mark$up to the "o)pany ++* Mark$up #or tra!e ++*

A4- 512.00 607 A4- 524.00 487 A4- 5 20.00

Mini
Cost o# the pro!u"t Mark$up to the tra!e ++* Consu)er )ark up Consu)er pri"e A4- 52.00 907 A4-59.20 807 A4-543.20

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4.0 /n"o)e State)ent


*roje"te! /n"o)e State)ent #or the year en!e! 2009
5 Sales 9ybrid ,si'e 5- - 7 ,50.00I 4 0009ybrid 0ini 7 ,@ .50I 4F0001,F50,00 0 1,094,50 0 4,@@4,500 Cost o# Goo!s Sol! 9ybrid ,si'e 5- - 7 ,15.00I 4 0009ybrid 0ini 7 ,5.00I 4F000@05,000 115,000 ,540,000Page | 17

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Gross *ro#its

1:922:20 0

Marketing ; pro)otional <,penses Bromotional :+penses ;ommission 0ar%eting 0anagers Salary Sales Staff Salary Administration staff salaries 8eneral 3&erheads A&erage 9andling 1 Geli&ery ;harges #ra&elling 1 allowances

150,000 145,000 140,000 140,000 *0,000 /0,000 100,000 F0,000

, *5,0001:133:20 0 ,500,000-

Other O(erhea!s

%et *ro#its

633:20 0

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