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Kookaburra (Pratik Negi)

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  • 1. INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT AHMEDABAD End term project SUBMISSION ON Strategic Marketing Submitted To: Professor Partho Sir Submitted By: By Pratik K S Negi SS/09-11/ISBE/HR
  • 2. Assignment – we have to select a sector, and the product that the company is giving to the end consumer, then we have to critically analyze the product on the parameters of SWOT, porter analysis. Also we have to discuss the PLC of the product or the service. And at the last we have to write the implications that can be incorporated for the same. As if the organizations product is doing well in the market or not? Solution The sector that I have chosen for the strategic marketing is – sports goods manufacturing sector. Company that I have chosen is – kookaburra Cricket Gear’s About the company Kookaburra Sport Kookaburra Sport was established in 1890. We have world acclaimed cricket bats with the Kookaburra logo chosen to be used by some of the world’s best. The Kookaburra Turf cricket balls are used exclusively in Test cricket in Australia, New Zealand, South Africa, Sri Lanka, Bangladesh and Zimbabwe with Pakistan being another renowned Kookaburra stronghold. Name For the first 100 years of our existence, Kookaburra Sport traded as A G Thompson Pty Ltd and many members of the Thompson family are still involved in the day to day running of the company, looking to extend its award winning record as the world’s best known manufacturer of hockey and cricket balls Family Background Founded in 1890 by Englishman, Alfred Grace Thompson, a saddle and harness maker, with a love for sport, A G Thompson Pty Ltd. began business in Bay Street Brighton Victoria and by WW1 was already entrenched as one of the leading Australian hand-made cricket ball manufacturers.
  • 3. Cricket Involvement In 1945 the then Australian Cricket Board of Control wrote to all the Australian cricket ball manufacturers requesting that they send samples of their products for possible use in the first post war Test Series, involving Don Bradman’s Australians and the visiting English team. The A G Thompson “Kookaburra Turf” ball, a hand sewn, five layered quilt cricket ball was chosen, beginning an unbroken 62 years association with the International game which since the late 1970’s has also included the use of a white leather ball used for limited over cricket in Australia. Kookaburra now exports worldwide to all cricket playing nations Since 2002, it has seen a very active time in the company’s history with the completion of the new manufacturing complex at nearby Moorabbin housing over 70 employees and the UK acquisition of the 200 year old cricket ball manufacturer, Alfred Reader & Co Ltd, also with 60 plus employees, confirming that Kookaburra Sport is the largest cricket and hockey ball manufacturer in the world. Kookaburra continues to strive for excellence to be the best equipment for hockey and cricket both locally and world wide Company today In addition to its Australian operations, Kookaburra has offices in most of the world's major cricket-playing countries: the United Kingdom, New Zealand, South Africa, Pakistan and India. The company sponsors a junior cricket tournament called the Kookaburra Cup. It also has endorsement deals with many players including current Australian captain Ricky Ponting. They have 3 models of cricket bats both in the UK and in Australia: Kahuna, Blade and Ice; the UK also has the CCX, which has replaced the Beast for 2010. The Beast is still part of the current Australian range. Kookaburra also manufacture top quality hockey sticks, most notably the ICON range, which is used by many international players Cricket Equipments produced Cricket Batting Gloves Kookaburra Cricket Balls Kookaburra Cricket Bats Cricket Footwear Wicket Keeping Cricket Bag Cricket Clothing other accessories
  • 4. SWOT analysis of the company Strengths: attributes of the person or company those are helpful to achieving the objective(s). Weaknesses: attributes of the person or company those are harmful to achieving the objective(s). Opportunities: external conditions those are helpful to achieving the objective(s). Threats: external conditions which could do damage to the objective(s). Swot- analysis for Kookaburra Company Strengths Weakness 1. Technological aspect 1. Replacement issue with the 2. Players endorsed warranty problem for the 3. Quality parameters strict products 4. Global dealership 2. Local competition from 5. Customized gearing for any small players player on their height and 3. Price competition for similar weight ratio product 6. Best use of Brand Image 4. Depleted sales volume due Internal factors to less endorsement 5. Less of IT use and lack of BPR in outsourced countries Opportunities Threats 1. Changing customer habit of 1. Tax increase and import duty using a inferior cricketing 2. Local lobby to boycott the use gear of foreign equipment 2. Manufacturing unit in non 3. New distribution channels domicile countries for mass 4. Denial from local cricketing distribution. bodies in remote nations 3. Better logistics and 5. Inadequate and inefficient External factors customized products consumer base in other 4. Better use of online portals countries (Asian region) and IT can be implemented Positives Negatives
  • 5. These factors are totally dependent on the 2 classifications Internal factors – The strengths and weaknesses internal to the organization. External factors – The opportunities and threats presented by the external environment to the organization. Product Life Cycle In the case if we are analyzing the kookaburra cricketing gear. We can implement the product life cycle in such a manner that the company was established way ahead and been a market leader in the Australian and England for the cricket equipments but when compared as the company has tried to expand it s offices and distribution channel to various other countries it has remarkably not done great for the company. But still it is a step for extending the maturity phase of the company and a parallel shift has been made to venture out in other sports manufacturing like the hockey sticks and other sports as well. So not only the company has tried to elongate the cricket segment but it has also tried to start a new PLC for other sports. So the PLC curve that we can draft out can be Maturity pre- decline Profit growth introduction Hockey equipment/ global strategy Stages for (cricketing gear) new vertical (hockey)
  • 6. Pestel analysis P—Political E—Economic S—Sociological T—Technological L-- Legal E-- Environmental PESTLE analysis is in effect an audit of an organization’s environmental influences with the purpose of using this information to guide strategic decision-making. The assumption is that if the organization is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. Advantages Simple framework. Facilitates an understanding of the wider business environment. Encourages the development of external and strategic thinking. Can enable an organization to anticipate the future business threats and take action to avoid or minimize their impact. Can enable an organization to spot business opportunities and exploit them fully. Thus the kookaburra company can use the pestel analysis for the understanding the market parameter and can help to develop as a company to maximize the gains that can be taken from the same. Political Factors  1. Government can form strict rules to avoid the import of sport utility goods from overseas market to promote the local manufacturing 2. As kookaburra has a tendency to increase the expansion the host countries can formulate the rules so that the company has to invest as Fixed direct investment in the infrastructure 3. Non environmental influence. Economic Factors 1. Exchange rate issues with the rate fixation 2. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy might affect the transaction 3. International standards in the industry are not there, so it might affect the approval of the product in the other economy
  • 7. Social factor 1. There would be no issue as this industry is only sports centric and no religion or caste has any problem with the same 2. The game is not catered as a prime sector for making carrier. Nor in India or other countries the small format of the game is that paid hugely thus it make a issue for throwing such a huge amount of money for the products Technological Factors 1. The technological use is of top grade as it is a market leader in the manufacturing of the cricket gear 2. R&Nd and technological advancements are of top focus resulting in the best of the use of their research techniques for the advanced cricketing gear EX—the mongoose BAT that is being used in IPL Environmental Factor 1. There is basically no environmental factors that hamper the kookaburra company but still the advancements can be done 2. Use of de-moisture balls and sweat reduction gloves are examples of the innovations that the company has done Legal Factors 1. The company has been following the legal norms that are made by the ICC and make sure that minimum errors are pertained for the use of their accessories Applying the 5 forces Entry – barriers Acceptance by the breeding grounds of world cricket and new openings High charges or remunerations for the products they cater Competition from the local players Substitute and complements Manufacturing can be taken outside UK and Australia Value for money products can be launched for amateur learners of the game Supplier
  • 8. Commission can be reduced or the cut that the dealers charge for the product are high Replacement can be done for manufacturing defects in a ease manner which is right now pretty difficult Buyers More options can be given to consumers for wide range of product range Customized product can be given to the customer in Australia and other developed countries but not at the cost of giving inferior product to developing nations. Implications and conclusion The sector which I have targeted is a sector in which the competition is not that huge at international level. As the countries which are into cricket as sports are very less and thus gives a huge chance to company to penetrate in the world market as it has already done the same. The company has also tried the strategy of using the spill over to market the Hockey sports goods manufacturing and thus will be an add on to the company. But the area that the company kookaburra is lagging is handling the local market and pressure to reduce the price, though the issue is simple that the market demand is for the high quality goods with average pricing. Thus the way in which the company has progressed has been bit ok. Rather the overview what I have realized is that company has largely been able to cater the sport persons small and desired needs to best of their capacity. Thanking You Pratik K.S Negi ISBE (SS/ 09-11-- HR)

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