Gucci Environmental Analysis, Market Research and Consumer Segments S1 Report

MKT10007 Fundamentals of Marketing
Semester 1,19
Assignment 4: Companion Document
Positioning; Check Points - Have you followed this logic
sequence?
· identify USP >
· Justify your USP using the Criteria >
· Include that USP in the Brand Positioning statement >
· Demonstrate USP and other elements of your positioning using
the Positioning Maps, where one of the axes on one of the maps
is a USP and other axes demonstrate other Factors which the
consumers regard as important.
Relevant data to support your PLC classification would include
date since product launched, typical life cycle of previous
models, sales growth rates and trends.
Appendix A - D and HD Assignments will refer to arguments on

these slides to justify their recommendations regarding
Marketing Mix with reference to PLC and Diffusion of
Innovation.
[Type here]
MKT10007 Assignment 4 Companion Document S1,19.docx
COMS 560
Discussion Board Forum Grading Rubric
Criteria
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answered in the thread.
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are answered in the thread.
1 to 9 points
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are answered in the thread.
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answered in the thread.
Thread – Major Point Support

12 to 13 points
Major points are supported by all of the following:
· Reading & Study materials;
· Pertinent examples (conceptual and/or personal);
· Thoughtful analysis (considering assumptions, analyzing
implications, and comparing/contrasting concepts);
· At least 2 source citations in current APA format; and
· Integration of at least 1 biblical principle.
11 points
Major points are supported by most of the following:
1 to 10 points
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0 points
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Replies – Key Components
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4 points
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expounding on the thread.
1 to 3 points
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on the thread.
0 points
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Replies – Major Point Support
5 points
Major points are supported by all of the following:
implications, and comparing/contrasting concepts); and
· Source citations in current APA format.
4 points
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Structure (30%)
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Thread – Grammar/Spelling
5 points
Proper spelling and grammar are used.
4 points
Between 1–2 spelling and grammar errors are present.
1 to 3 points
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Thread – Word Count
4 points
The thread is at least 400 words.
3 points
The thread is 399–300 words.
1 to 2 points
The thread is 299–200 words.
0 points
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Replies – Grammar/
Spelling
3 points
Proper spelling and grammar are used.
2 points
1 point

0 points
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Replies – Word Count
3 points
Each reply is at least 250 words.
2 points
Each reply is 249-200 words.
1 point
Each reply is 199–100 words.
0 points
Each reply is less than 100 words.
Total
/50
Instructor's Comments:
Page 2 of 2
Gucci Enviromental Analysis, consumer segmentation and
market research
Executive Summary
The Research in this report will provide an insightful analysis
in the current state of Gucci’s marketing environmental. As

Gucci is a leading brand in the industry it is highly unlikely that
other brand will prove to a be a threat to Gucci’s establishment
in the market place. Environmentally friendly products are also
playing a huge role in the market place are playing a significant
role in the consumer decision making process. In addition, our
consumer segment analysis shows that many people in the
young bracket are buying Gucci products and driving the
market. Furthermore, the consumer segmentation also showing
that many consumers are willing to pay more money to purchase
Gucci products as there is an increase in income in certain
households. Ultimately, Gucci could use the research that we
have done in order to improve their business and our
recommendations can certainly help them do that.
It is also recommended that Gucci should focus on gaining more
consumers in different age brackets in order to improve their
business and brand. Gucci should also try creating backpacks
made out of environmentally friendly products. Gucci should try
and focus on gain consumers in the low consumer segment in
order to widespread their business across different age brackets.
More research can be done by Gucci in order to improve their
business and take on different strategies to enhance their
business.

Table of Contents
Executive Summary 2
Introduction 3
Section 1 The marketplace and influencing factors 4
Section 2 Consumer Segmentation 12
Section 3 Assess the attractiveness of each cosnumer segment 13
Section 4 Recommendations for additional research 13
Conclusion 13
References 13
Reccomendations 15
Introduction
The Purpose of this reports is to conduct an Environmental
analysis, Consumer segmentation and Market research on the
Gucci Print Leather Backpack. This report illustrates the types
of aspects in the current market in which the Gucci Print
Leather backpack will sell, the environment, the consumer
segments, and its attractiveness will be shown. As a group of
marketing consultants, we have been approached by Gucci to

create this report. Furthermore, recommendations are also
provided in this report. The limitations of the report were the
timeframe, as we could not get primary data and all our data is
from secondary sources. The information will be presented in
tables and data sources. The availability of the information was
a challenge as most of the data was not related to our company.
All the information presented is from secondary sources and
was gathered from research.
Section 1 The marketplace and influencing factors
The Micro-Environment
The Gucci brand is an Italian based luxury company which
provides a wide range of products such as Men’s and Woman’s
clothes, shoes, backpacks, wallets, purses and many other
accessories (Gucci, 2016). Currently Gucci offers many
different types of backpacks as well as a huge number of
backpacks for both Men and woman.
The tree diagram illustrates the scope of the industry in which
Gucci operates in:
As shown by the tree diagram Gucci belongs to the fashion
industry as it is defined by the style of clothing and accessories
worn by a group of people or individuals (Steele,2019).
The Fashion industry is a multibillion-dollar industry which is
dedicated to the marketing and selling of clothes (Steele,2019).
The fashion industry consists of four levels which one is the
production of raw materials, secondly the production of fashion
industry, thirdly retail sales and various forms of advertising
and promotion (Steele,2019). The fashion industry as a bright
portrait which a worldwide revenue expected to rise from
$481.2 billion in 2018 to $712.9 billion by 2022 (Orendorff
2019). There are many factors that are driving this growth
which include expanding their global markets. Furthermore,
increase in technological advances such online access and
smartphones. Many middle classes having disposable incomes
which allows them to make such purchases. The Fashion
consumers will have more buying power, an estimate has been
made that customer growth is projected to grow from 1.2 billion

by 2020, furthermore majority of the customers are within the
16-24 and 25-34 age groups (Orendorff 2019). However, there
are many threats to the fashion which include things such as the
cost of raw materials. Cotton, silk, wool and leather are things
which all need to be farmed. A NASA lead study shows that
many of the worlds freshwater sources are being drained faster
than they can be replenished (Marshall 2017). Additionally,
rising labor costs is something that will have an effect on the
industry. If the labor force is changed to a different area or
country, this again will have a knock-on effect raising the prices
across the globe (Marshall 2017).
In terms of our product the Gucci Print leather backpack, the
statistics show that bags are still growing at aa stronger rate
which will see a double-digit growth- 15% in 2018 which will
dip into the single digits by 2022: 8.7% (Orendorff 2019). The
projection makes it the strongest healthiest segment of
ecommerce fashion, despite the numbers being the smallest.
(Orendorff 2019). The features that Gucci’s competitors in
common have is that most of the products offer the same range
of designs and backpacks. The backpacks are all prices in the
same range showing their true stylish nature which adds to an
individual’s status.
Ultimately, it can be seen that many competitor companies in
the fashion industry are owned by other brands which can be a
subsidiary, business unit and division of a parent company.
Competitor Analysis
Louis Vuitton is the third most popular luxury brand and offers
products that is similar to Gucci, however Gucci is ranked as
the most popular luxury brand. Louis Vuitton is owned by
LVHM which own other brands such as Givenchy, Marc Jacobs
and Fendi. Louis Vuitton is a member of the Better cotton
initiative, which aims to transform the cotton production by
reducing it environmental impact (Gucci 2019).
Versace, just like Gucci, produces similar products which all
have the same price range as that of Gucci and Louis Vuitton.
Versace is owned by Michael Kors which produce backpack

themselves.
The Product comparison that is shown below shows how both
Louis Vuitton and Versace. Are placed in Gucci’s strategic
group.
#
P
Our Brand + Sub-Brand
Strategic Group Competitor 1
Strategic Group Competitor 2
Brand + Sub-Brand
Gucci Print leather Backpack
Louis Vuitton JOSH signature damier
Versace Barocco Embossed Palazzo Backpack
Brand Positioning
A high luxury product that shows both status and wealth. This
increases the way a person is perceived in public. Furthermore,
it is also positioned as being the Trend in the fashion industry.
It is a symbol of modern style. Creates an elegant, stylish and
value for money product.
A luxury item that is affordable and enhances a individual’s
high-class status.
Product Specifications
Place
Gucci Showroom
Louis Vuitton showroom
Versace showrooms, Boutiques and Luxury items store
Price

$2855
$2420
$1885
Promotion
Television advertising, newspapers, Holdings, celebrity
ambassadors
Television advertising, newspaper ads, Celebrity ambassadors,
fashion shows that show the backpack
Television advertising, newspapers, Holdings, celebrity
ambassadors, Ad’s on Public Transport
Advantages & Disadvantages c/w our Brand and Sub-Brand
The advantages are that it has good reputation in the market, the
number of stores and being easy to access the locations.
Furthermore, there is premium packaging, and genuine soft to
touch leather. Also, the backpack is waterproof.
The disadvantages are that it sacrifices necessaires. There are a
more wastage of resources in creating high end luxury products.
The advantages are that it makes individuals classier and more
elegant. There are easy number of locations to get access to.
The backpacks have adjustable straps and are made with
genuine leather. The fact that the backpack is also waterproof
and fireproof.
The disadvantages are the price of the product, similar
alternatives available in the market.
The advantages are it that it has a good reputation in the market.
They use genuine leather. The backpack also a feature a gold-
tone.
The disadvantages are that are not enough showrooms for
Versace. The backpack does not offer any extra features. There
Is no premium packaging and the backpack is not water-proof.
Other factors important to prospective buyers
Reviews from other people

What other individuals are using at that given moment
Price
Packaging
Brand Trustworthiness and familiarity
Reviews of the product
Recommendation from other sources
Social media. Influence on the buyer
Current financial conditions
Data was current as of (28th April 2019).
Sources; (Gucci 2019, Louis Vuitton 2019, Versace 2019).
Louis Vuitton objectives as a company are that to be creative
and innovative, also to aim for product excellence. Their overall
goal is to represent luxury life with elegance and creativity.
They are already members of the better cotton initiative which
aims to transform cotton production by reducing its
environmental impact and improve livelihoods. Also, its Parent
company LVHM, has set a target to reduce carbon emissions
generated from its own operations by 25% (Rauturier 2018).
Versace’s objectives are similar as Louis Vuitton which
involves being creative and innovative. As a brand Versace does
to incest to environmentally friendly products as well as
implement a sustainability program. Gucci has already invested
in a 10-year sustainability plan (Gucci 2019). Hence, it can be
seen that both Louis Vuitton and Gucci are moving towards
more environmentally friendly products which shows their
marketing strategy and where they are heading in the future.
This is threating to Versace has they have not made a move to
creating products that are more environmentally friendly. The
Gucci Print leather backpack is the most expensive backpacks

out of the other competitors however there is not much
difference between the other products. As a brand Gucci is
going to be more sustainable but they have not introduced those
plans to their backpacks.
Other Micro-Environment Players
All of Gucci’ leather comes from a workshop in Florence. They
work with Gucci in order to use their leather which allows for
the manufacturing of all Gucci’s leather products. This can be
seen in our Gucci Print- leather Backpack. All of the leather is
sent out so that it can be manufactured into products. As the
workshops in Florence are responsible for the manufacturing of
leather for their products, any breakdown in relationship can
cause problems for their manufacturing. Until they find a new
leather source all the production will be halted. Without their
leather workshops they will be lack of production, as well as
many of their products will halted. Product supplies will also be
halted. Additionally, there could be problems regarding the
relationship between the supplier and the company. The use of
this leather can be leveraged by adding it to provide better
quality in the product and also use leather that will allow for the
durability of the product. There is reduced costs as having a
good relationship means that the suppliers and the company can
work for a longer period and churn is kept to a low. Without
having a good relationship with suppliers there will be a huge
loss in profit.
The Macro-Environment: Other environmental factors
influencing the company
Factor/Area

In what direction is the trend
Why is this trend happening?
What does this mean for our current strategy? How might we
change our strategies in order to anticipate this Trend?
Economic
Income changes
Many homes have more income which means that they are able
to spend more.
This means that consumers are willing to spend more on luxury
brand products. Increase the Target Market as many Individuals
are able to spend more money.
Rising Affluence
Many consumers may feel happy in buying luxury goods.
This means that more consumers are feeling are willing to spend
more money on luxury items to find happiness. This trend
represents that fact it makes them feel good about themselves
and also impress people in society.
Natural
Shortage of Raw Materials
As a society we are using up all the raw materials that are
available to us. (Steele,2019)
Promote the fact that the product is made of environmentally
friendly products which Gucci is already doing

Cost of Energy
As we use all our natural resources the cost for them goes up.
(Steele,2019)
Promote the fact that the product is made of environmentally
friendly products which Gucci is already doing
Global Pollution level
It is rising which is causing problems such as climate
change((Steele,2019)
Promote the fact that products are being created in ways that
don’t affect the environment.
Demographic
Average Population Age
The average population age is increasing due to the baby
boomers
Increase the target market of the backpack and target it at more
individuals
Decline in size of household
The family sizes are declining due to divorce, having kids and
deciding to marry later
Shift the focus from having kids and families by investing into
luxury brand items so they can still enjoy themselves.
The risks that income changes may cause is that for some
individuals they may not be able to afford these high-end luxury
products. However, the opportunities it may cause it that they
may save their money and then purchase the product. However,
individuals who earn enough income can easily purchase this
product. A strategy could be to increase the target the market
and also create products that are more affordable to the

working-class consumer. The risks that occur with rising
affluence is that consumers may buy the product, but they don’t
feel satisfied while buying the product. The opportunities it
creates is that buy more of these high-end luxury items in the
hope it provides them with happiness. A strategy that Gucci
could use is how buying the product can cause a higher status in
society.
The risks that occur with environmental impacts is that society
is using all the raw materials, increasing pollution as well as
energy prices going up. This has a massive effect on climate
change. The opportunities that it creates is the Gucci can create
more environmentally friendly products to combat this issue.
The risks that occur with average population age is that many
consumers would not want to buy this product as they may not
believe it is their target age. The opportunities that this creates
is that Gucci can increase their target market and appeal to
consumers of different ages. The risks that occur with decline in
household is that many consumers may be saving up or planning
to have kids which requires a financial commitment. The
opportunities this causes it that they can be target and
persuaded to buy luxury items so they can enjoy themselves.
Section 2 Consumer Segmentation
Consumer segmentation
Upon investigating the market of luxury goods, the decision was
made to segment potential consumers based on their income.
High income consumers have traditionally been the prime focus
of luxury brands’ marketing efforts, but emerging trends show
there is an opportunity to increase overall profits by extending
marketing efforts to low to middle level income consumers as
they are increasingly willing to splurge on luxury products
(IBISWorld, 2019).
Table 2: Consumer segmentation table

Income
Usage-rate base
Age
Benefits sought
High
Heaviest users
35-54
Superior quality products, long lasting. Fashion focused
Middle
Light or irregular users
15-34
Brand status
Low
Medium users
55 and over
Durable and high quality
Justification of the segmentation base
Measurable, accessible, substantial, differentiable and
actionable are the five factors that are used to determine a
successful segmentation strategy (Campbell, 2019).
Measurable; Industry reports can provide information to the
company about the size and purchasing power of a particular
segment. Industry reports contain accurate demographic
information about the consumers operating within the market
which allows brands to explore what consumers are buying and
how often based they are buying the brand’s products based on
their level of income.
Accessible; The brand can use social media and data collected
from its own website to tailor marketing communications to
individual consumers that can be delivered via email in an
effort to reach and serve all consumers.

Substantial; High income consumers have consistently proven to
be a profitable segment of the luxury goods market as their
excessive discretionary income has supported their luxury taste
(Ikeda, 2006). Middle to low-level income consumers are
growingly purchasing entry-level luxury products showing that
they too are a profitable segment to market to and will continue
to be in the future.
Differentiable; Depending on how much discretionary income
the consumer has; the brand can target products to them
accordingly. Entry level products can be targeted towards low-
mid level income consumers and high-end products to high level
income earners, respectively.
Actionable; An actionable segment is one that can be served
effectively by a brands’ marketing communications. Brands can
utilise social media to interact with younger, lower-income
consumers to deliver product information and create brand
preferences (Godey et al., 2015).
Section 3 Assess the attractiveness of each cosnumer segment
Market competition in recent times has escalated to a different
level never experienced before. In the modern world,
technology has enabled brands of all types and sizes to compete
on the same stage to market their products, giving small
businesses a chance to bite into the shares previously occupied
by the larger ones. For this reason, it is important for brands to
design the most competitive strategies to attract consumer
segments in the population as we explored in this section.
For our discussion, we looked at the Gucci brand in Australia to
gain more insights into their strategies for attracting consumers.
The brand offers a wide variety of goods and services in their
catalog, including print leather backpacks, jewelry among
others. Being the big brand that it is, the Gucci Company has a
fast-growing internet presence. Their abundant resources also

allow the company to attract customers of a low margin segment
with the quality leather men’s backpacks going for 2,855 AUD
for instance. Furthermore, the company has enough resources to
provide cheap delivery services for their customers anywhere in
Australia, and given its popularity is bound to get large sales
volumes among the low margin consumer segment. In addition,
the friendly marketing terms provided by the company attract
the masses due to effective communication, making it easier to
do business. Thus, a large and fast-growing segment would be a
perfect match for Gucci Company to establish and run their
operations in this specific market and accrue substantial profits
from their engagement. The strategy would also boost its
presence in other markets segments given referrals from
satisfied consumers and increasing popularity.
Section 4 Recommendations for additional research
The information that we want to find out is what are the factors
that give our product competitive advantage over other
competitors and what can be done to further this advantage.
Moreover, we want to know how a customer would react if they
knew the underlying factors in conscience.
· Would higher import taxes in a certain country influence the
customer into buying a local branded luxury bag? (MIMCO in
Australia)
· Since reselling has become famous these days with a lot of
online trusted markets coming in, would consumers buy a used
Gucci bag?
· What additional features in the bag would influence the
millennials into buying a Gucci leather backpack?
· Would the demand of the bag increase if there were some
discounts?
Data can be acquired using several methods. Data is raw and it
can be transformed into information and then to knowledge to
help the company to increase the brand recognition and profits
in the market. Knowledge would also help develop the strategies
in place and create new marketing approaches to attract the

target audience.
Primary Research
One way of getting some data on additional features in the
backpack could be surveys(online). Surveys are reliable way of
getting primary data as it can give use large quantities of data
and a lot of perceptions in a short period of time. The main
reason online surveys have been selected as data gathering
method is because the target audience are the millennials and
millennials prefer keyboard over pen and paper.
An online survey would have a large sample size and would
give the analysts precise data which would then be analysed and
interpreted to help the marketing managers to develop new
strategies. By conducting these surveys, we get an idea what the
consumers want, and how they will react, which in turn reduces
the psychological pressure from the minds of the strategists. It
provides pathways to accurately create strategies, it also
provides time to allocate resources to attract the target audience
and gain advantage over competitors.
Advantages of online surveys:
1. Large amount of data can be collected in a short time.
2. Keeping the surveys anonymous will help provide genuine
answers from the targeted audience.
3. As people with different age groups and mind sets can
participate, we will get to know the needs of different age
groups, that we can use to further enhance the product being
created.
4. Little to no investment is required for online surveys.
5. The targeted audience can complete the survey as per their
convenience.
Disadvantages of online surveys:
1. Clarification on the provided answers cannot be done.
Research design:

A questionnaire can be designed containing the list of features
that could be added to the backpack. Target audience can be
asked to select the top 5 features that they feel are ‘required’ in
a bag apart from being classy. Questionnaire will also contain
an additional box for mentioning a feature(s) that is not present
in the list, but the users feel that it is required. It will also
contain a question for choosing the age group of the person
participating. As the target audience is mostly students, our
company can use the connections that we have with the
universities to help us get the audience for the survey. The
sample size would be thousands of completed surveys that we
can use to get the required information.
Conclusion
In conclusion, it can be noted that the fashion industry is a
multibillion-dollar industry and market is highly competitive.
Gucci have been smart to update the products from time to time
and had a double-digit growth last year. The market has been
divided on the basis of income. High income contributors
contribute a lot to the company however, it would be smart to
target the low-level income earners as research shows. The
report shows that that customers in the higher age bracket the
most attractive segment. Moreover, online surveys would be one
of the best methods to acquire data as it could save time and
money and give us accurate data. The above factors give as a
clear understanding of Gucci’s rand positioning in the market,
which can further be used foundations for marketing strategies.
Reccomendations
Gucci Backpacks are an expensive product, so Gucci needs to
create Backpacks that are affordable for younger consumers but
still price their products, so they remain a luxury product.
Consumers are wanting products that are more environmentally
friendly in today’s society, so Gucci needs to tap into the
environmentally friendly market by creating backpacks that
match the criteria.
Gucci’s users are in the high-age bracket between 35-54 so
Gucci can create more products that are made for them which

inclines them to purchase more products.
Ultimately Gucci can do more research into the backpack
industry to find ways that can help them have competitive
advantage over their competitors and increase their brand status.
References
Major, J, Steele, V,2019, Fashion Industry, Britannica, viewed
on 26/04/19
https://www.britannica.com/art/fashion-industry
Marshall, D,2017, The top 5 threats facing the apparel industry
today, immago, viewed on 27/04/19
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Rauturier, S, 2018, How Ethical Is Louis Vuitton, good on you,
viewed on 26/04/19
< https://goodonyou.eco/how-ethical-is-louis-vuitton/>
Orendorff, A, 2019, The State of the Ecommerce Fashion
Industry: Statistics, Trends and Strategy, shopifyplus, viewed
on 28/04/19
< https://www.shopify.com/enterprise/ecommerce-fashion-
industry>
Versace. (2019). Versace Barocco embossed Palazzo backpack
for Men | Official Website. [online] [Accessed 12 Apr. 2019].
Available
at:https://www.versace.com/international/en/men/accessories/ba
gs-backpacks/barocco-embossed-palazzo-backpack-
d41oh/DFZ5350-DPBA1_D41OH.html?cgid=242000#start=1
Gucci.com. (2019). Gucci - Gucci Print leather backpack.
[online] [Accessed 12 Apr. 2019]. Available at:
https://www.gucci.com/au/en_au/pr/men/mens-bags/mens-
backpacks/gucci-print-leather-backpack-p-
5478340Y2BT8163?position=10&listName=ProductGrid&categ
oryPath=Men/Mens-Bags/Mens-Backpacks

Vuitton, L. (2019). Products by Louis Vuitton: Josh. [online]
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https://au.louisvuitton.com/eng-au/products/josh-damier-
graphite-012577
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<http://clients1.ibisworld.com.au/reports/au/industry/productsan
dmarkets.aspx?entid=5465>.
Ikeda, S 2006, ‘Luxury and Wealth’, International Economic
Review, vol. 47, no. 2, pp. 495-526.
Godey, B, Manthiou, A, Pederzoli, D, Rokka, J, Aiello, G,
Donvito, R, Singh, R 2016, ‘Social media marketing efforts of
luxury brands: Influence on brand equity and consumer
behaviour’, Journal of Business Research,vol. 69, no. 12, pp.
5833-5841.
Campbell, G 2019, ‘Lecture 4; Segmentation, Targeting and
Positioning (STP)’, MKT10007 – Fundamentals of Marketing,
Canvas, Swinburne University of Technology, April 2nd,
viewed 4th of May, 2019.

MKT10007 Fundamentals of Marketing
Assignment 4: Marketing Strategy Report; Targeting,
Positioning and the Marketing Mix - Task Description +
Template + Rubric
Assignment 4: Individual Report recommending a Marketing
strategy,
Word limit*: 2,000 (+/- 10% = MIN 1,800 to MAX 2,200
words). We want everyone to get their best result for
Assignment 4. So please try to stay within the Max word limit
of 2,200 words. If you exceed the Max we will not deduct
marks. However, if you have written more than 2,200 words
excluding the items listed below*, you have probably gone into

more detail than you needed to in some sections. So, in that
case we suggest that you try to summarise some of your more
detailed content.
*Word Count does NOT include; Table of Contents,
Appendices, List of References, Tables, charts, diagrams or
pictures.
· In Assignment 4 you will work individually to recommend a
marketing strategy for the same Brand + Sub-Brand that you
studied for Assignments 2 and 3.
· You will act as an independent consultant and produce a report
for the Marketing Manager(s) of your selected Brand + Sub-
Brand.
· In Assignment 3 your Group analyzed the marketing
environment and segmented the consumer market for your
Brand + Sub-Brand. InAssignment 4, you will recommend a
Marketing strategy, based on your selected brand and sub brand
analysis.
· You will use marketing theories and concepts appropriately.
· You will find sources of information to justify the points you
make.
· Therefore, you willcite your References* and include a List of
References as the last pages of your report. * In-text
referencing.
You should aim to reference a MINIMUM* of at least two
Academic sources (peer-reviewed journal articles, does not
include textbooks) and at least seven Business sources. *Cite
more than 10 to get top marks for Referencing – see Rubric
There are many useful resources available to you which you can
use to ensure that you achieve a D or HD Grade; Go to Canvas >
Assignments > Assignment 4, download the documents, and
follow these steps:-
1. Procure a copy of your Group’s final versions of Assignments
2 and 3, plus the data used to create those reports. This
information should already be posted on your Group’s Facebook

page/Google docs. Make sure that your Group's Assignment 4
includes a Segment Attractiveness Table. You need this Table to
start Assignment 4. If there is not one, then you and your Group
members need to create one now, before you can start
Assignment 4.
2. Template – download the Template as a Word document and
use it to provide the Headings and Sub-Headings. Then follow
the Instructions on the Template. Then, remove the Instructions
from the Template progressively as you write your Report.
3. Rubric – read carefully the requirements here for D and HD
Grades. See also the Marking Guide page 2 – which is a quick
checklist of the key things you need to include to get the higher
grade marks
4. Companion Document – this provides the key theory slides +
shows you examples of the key items required in the
Assignment; for example, Positioning Charts, recommended
strategies at each stage in the Product Life Cycle, and so on.
5. Also on Canvas are the Lecture slides; Lectures 6 to 9
(Marketing Mix), Lecture 10 (Branding) and Lectures 11 & 12,
which deal with the material you will need for your Conclusion;
ethics, social responsibility and so on.
6. Also, go to Canvas > Modules > Student Manual. Here you
will find all the information you need about getting data,
writing Reports, Referencing, demonstrating your Application
of Theory and much more - all the skills you need are here.
7. Bring your Draft and your questions to Consultations. To see
the list of Consultation times go to Canvas > Home > read down
the page until you come to Consultations. Note that in addition
to the usual Consultation times for Weeks 2 to 12, there are
many additional Consultations available in Week 13. NOTE that
these Week 13 Consultations are at different to the times for
Weeks 2 to 12.
Individual Brand and Sub Brand Report - Overview of Structure
A. Executive Summary, B. Table of Contents, C. Introduction

1. Target segment.
2. Brand Positioning.
3. Marketing Mix (4Ps) recommendations.
4. Conclusion.
A. Executive Summary (approx. 200 words)
Here you will provide a summary of-
a. the report’s major purpose,
b. the analytical processes used,
c. the findings, and
d. Your recommendations.
B. Table of Contents. NOT INCLUDED IN WORD COUNT
C. Introduction (approx. 150 words)
e. The authorization and purpose of the report tells the reader
who it was who commissioned the work and why it is being
produced.
f. Hindrances are any limitations encountered in relation to data
collection, availability or access to information and information
that might be confidential in nature.
g. The scope of the report summarizes what the report covers,
how information will be presented, where the information
comes from and how it was gathered.
Section 1 - Target Segment (about 250 words)
Select ONE segment to be your Target Segment of your
recommended Marketing Mix strategy. The Target Segment
(which therefore becomes your “target market”) will be one of
the segments on your Segmentation Table from Assignment 3.
Base your decision on the Segment Attractiveness Table from
Assignment 3.
· Insert here your Group’s Segment Attractiveness Table from
Assignment 3. Add as an Appendix your Group’s Segmentation
Table from Assignment 3.

· You will select ONE segment to be your Target Segment.
· You will justify your selection of Target Segment by using the
data from your Segment Attractiveness Table and providing a
clear, relevant and insightful explanation of why your selected
Target segment is the best opportunity to grow sales
Section 2 – Brand Positioning (about 300 words)
You will recommend a Brand Positioning for your Brand and
Sub-Brand. Explain why this will appeal to your Target market
and why this Brand Positioning provides a Point-of-Difference
(also known as a Unique Selling Proposition) for your Brand
and Sub-Brand, compared with the competitors. Draw two
Positioning Maps.
Section 3 - the Marketing Mix – the 4Ps (about 750 words)
Recommend a Marketing Mix (the 4Ps) which will effectively
implement and communicate your Brand Positioning: -
3.1 PLC and the Diffusion of Innovation
· Identify the stage your product is in on the Product Life Cycle
(PLC).
· Then, based on the stage your product is in on the Product
Life Cycle, you will identify the consumers you will be
targeting in terms of the Diffusion of Innovations.
3.2 Type of Consumer product
· Then you will classify your product according to Type of
Consumer Product.
Recommend a Marketing Mix
You have now set your strategic direction by deciding on your
Brand Positioning, PLC, Diffusion and Type of Consumer
Product. Next step is to recommend a Marketing Mix (the 4Ps)
and explain how this Mix will implement and communicate your
Brand Positioning to your Target Segment in a way that will
effectively promote sales.
3.3 Product; Recommend a product design using the “three
levels” conceptualization, and explain why this product design

will effectively implement and communicate your Brand
Positioning.
3.4 Place; Recommend a “P” for Place that is appropriate for
the type of product and the level of distribution intensity your
Marketing Mix requires. Recommend one or more Channel
structures. Briefly describe how you think your product should
be displayed in that Place (pharmacy, electronics retailer,
whatever) and how you want it supported by the retailer.
Explain why this will effectively implement and communicate
your Brand Positioning.
3.5 Promotion; You will recommend an Integrated Marketing
Communications (IMC) campaign which will communicate a
clear, consistent, unified and compelling message to the Target
segment customers.
· What will the message be?
· Include at least three different promotional tools and briefly
describe each one. For example, describe a TV commercial, a
Sales Promotion and a Billboard. (If you would like to, you can
include hand-drawn or photo-shopped storyboards, posters etc.
to effectively communicate your ideas. (Pictures not included in
word count.))
· Explain why you have chosen these particular tools.
· Explain why this will effectively implement and communicate
your Brand Positioning.
3.6 Price; Recommend a Price and classify your pricing strategy
as Price Skimming, Penetration or Status Quo. Explain why this
will effectively implement and communicate your Brand
Positioning. Include a Price Comparison table showing the Price
for your Brand and Sub-Brand compared with competitors.
Summary Table of your Marketing Mix – brief summary (Tables
not included in Word Count.)
Mix
Current – what the Brand and Sub-Brand is doing now.

Your Recommendation
Why is your Recommendation better? Explain how your
Recommendation will more-effectively support and
communicate your Brand Positioning.
Product
Place
Promotion
Price
Section 4 – Conclusion, ethics and social responsibility(about
200 words): -
· In concluding you will: -
· Summarise how your recommended Marketing Mix will
implement and communicate your Brand Positioning to your
Target Segment.
· Show how your Marketing Mix is internally-consistent. For
example, if the Brand Positioning is that of a prestige product
show how each of your Ps is consistent with a Prestige
positioning.
· Explain how these recommendations are both are ethical and
socially responsible.
· Explain how your plan will be implemented in a way that
complies with the concepts of Corporate Social Responsibility.
· Include a Compliance Program that will ensure that actions by

the company will be monitored to ensure they are both ethical
and socially responsible.
· Show how performance will be measured using Triple Bottom
Line Reporting.
Referencing – You will be penalized (marks reduced) if you do
not provide references. You need to provide both citations (in-
text references) and List of References.
· “Where to get information” and “How to reference” - refer to
Tutorials 4 and 6
Handy Hint; review the final draft of the Assignment and check
off that all sections have been completed. Then check your
Written Expression (5 marks) and Referencing (5 marks) for
extensive in-text citation plus List of References.
Page 9 of 9
MKT10007 Assignment 4 Template & Rubric S1,19.docx
How to get higher grades; See what you have to do better, and
what extra things you have to do to get higher grades. White-
on-Blue = extra to get a Credit over a Pass, Grey BOLD = extra
to get a D compared with a C, Yellow BOLD Italic underlined =
extra to get an HD compared with a D.
Rubric for Assignment 4: Marketing Strategy
Criteria
Fail
Pass
50-59%

Credit
60-69%
Distinction
70-79%
High Distinction
80-100%
Executive Summary (5%)
Not all elements included.
Passable summary of the report’s major purpose, analytical
processes, findings recommendations.
Adequate summary of the report’s major purpose, analytical
processes, findings and the Recommendations.
Reasonably comprehensive and concise summary of the report’s
major purpose, the analytical processes, the findings and the
recommendations.
Comprehensive and concise summary of the report’s major
purpose, the analytical processes, the findings and the
recommendations.
Introduction (5%)
Purpose was missing or unclear. Scope unclear or absent.
You stated the purpose of the report, but not in a clear way. You
indicated the scope of the report to some extent.
You stated the purpose of the report. You indicated the scope of
the report generally.
You clearly stated the purpose of the report. You clearly
indicated the scope of the report with sufficient detail.
Authorisation included. You clearly stated the purpose of the
report. You clearly indicated the scope of the report with
sufficient detail. Limitations included. You clearly indicated the
scope of the report with specific detail.
How well you justified your selection of your Target segment
(10%)
Did not meet criterion.
Your Target segment selection is justified and demonstrates
some evidence that you have applied learnings from your

Group’s Assignment 3 report.
Target segment selection justified and demonstrates evidence
that you have applied learnings from Assign 3. Justified
selection of Target Segment using the data from “Segment
Attractiveness” Table. Clear explanation of why Target segment
is a good opportunity to grow sales.
Your Target segment selection is justified and demonstrates the
application of your learnings from your Group’s Assignment 3
report.
You justified your selection of Target Segment by showing
further analysis of the data from your “Segment Attractiveness”
Table. You provided a clear and relevant explanation of why
your selected Target segment is a good opportunity to grow
sales.
Your strong, well-informed and justified Target segment
selection demonstrates the application of your learnings from
your Group’s Assignment 3 report.
You justified your selection of Target Segment by showing
further analysis of the data from your “Segment Attractiveness”
Table. Your Report provides a clear, relevant and insightful
explanationof why your selected Target segment is a good
opportunity to grow sales. You explain which current and
potential company strengths will be most important in
developing sales to this segment.
How well you created and justified your Brand Positioning.
(20%)
Did not criterion. meet
Your Brand Positioning demonstrates you have identified a key
feature of your Brand and Sub-Brand and have explained how it
appeals to your target segment.
Brand Positioning identifies a key feature of your Brand and
Sub-brand. Explained how it appeals to target segment.
Brand Positioning demonstrates some insight into how your
Brand and Sub-Brand offers a USP compared w/competitors.
Brand Positioning demonstrates the use of relevant literature,
drawn from a range of sources. Identified a key feature of your

Brand and Sub-Brand and clearly & succinctly explains how it
appeals to your target segment. Brand Positioning also
demonstrates originality, creativity and independent thought by
offering a USP compared with the competitors.
Justified USP using the relevant criteria, and included a
Positioning Statement withall required elements. You included
TWO Maps, with the USP on one axis on one Map.
Demonstrates relevant literature, drawn from a range of sources.
Identified key feature of your Brand and Sub-Brand and clearly
and succinctly explains how it appeals to your target segment.
Demonstrates originality, creativity and independent thought by
offering a USP compared with the competitors. Justified USP
using the relevant criteria, and included a Positioning Statement
with all required elements. You included TWO Maps, with the
USP on one axis on one Map. In addition to the USP, includes
other highly-relevant positioning factors on the other axes.
Shows all the Competitors from the Strategic Group to which
your Brandand Sub-Brand belongs.
How well your recommended Marketing Mix (the 4Ps) would
implement and communicate your Brand Positioning. (35%)
To implement and communicate your Brand Positioning, you
have provided recommendations for each of the 4 P's (product,
place, price and promotion.
The recommendations are justified.
You identify the stage on the PLC. Identify the consumers in
terms of the Diffusion of Innovations. Classified your product

according to Type of Consumer Product.
Clear and internally-consistent recommendations for each of the
4 P's explaining why this will effectively implement and
communicate your Brand Positioning.
Product – the “three levels” conceptualization
Place –appropriate for Type, distribution intensity, Channel
structures, product display and support retailer.
Promotion incl message, 3 promo tools, briefly described,
explains why tools chosen.
Price – recommend strategy; skim, penetrate, or status quo.
Recommendations justified by logical argument. Summary
Table included.
You present data to justify your choice of stage in PLC.
Diffusion of Innovations and Type as per Credit standard. All
points covered for Mix as per Credit standard with all required
details plus:-
Product – clear linkage Conceptualization>Positioning.
Place; clear linkage Type>Intensity>Structures>display &
support.
Promo; clear linkage IMC>Positioning.
Price; strategy justified according to Intensity of Competition,
and Impact of the electronic environment.
All your recommendations regarding Marketing Mix are
justified with reference to PLC, Diffusion of Innovation and
Type of consumer product.
You included the Summary Table.
There is some evidence of creativity in your recommendations.
To implement and communicate your Brand Positioning you
have provided clear, internally-consistent, relevant and very
comprehensive recommendations for each of the 4 P's. All
points covered for Mix as per Credit and Distinction standards
with all required details, explaining why this will effectively
implement and communicate your Brand Positioning.

Recommendations justified regarding Marketing Mix with
reference to PLC, Diffusion of Innovation and Type of
consumer product as per Distinction standard.
You included the Summary Table.
There is strong evidence of creativity and independent thought
in your recommendations.
These Marketing Mix recommendations are judged very likely
to succeed in growing sales of the Brand and Sub-Brand.
Conclusion, ethics and social responsibility (10%)
Your Conclusion has adequately summarised how your
Marketing Mix will implement and communicate your Brand
Positioning. You have shown reasonably well how your
Marketing Mix is internally-consistent. Your Mix
recommendation shows some creativity and independent
thought. Some mention of how your recommendation are both
are ethical & socially responsible.
Your Conclusion has summarised how your recommended
Marketing Mix will implement and communicate your Brand
Positioning. You have shown how your Marketing Mix is
internally-consistent. Your Mix recommendations show
creativity and independent thought. You have adequately
explained why these recommendations are both are ethical and
socially responsible.
Your Conclusion has comprehensively summarised how your
recommended Marketing Mix will implement and communicate
your Brand Positioning. You have shown how your Marketing
Mix is internally-consistent. Your Mix recommendations show
creativity and independent thought. You have explained why
these recommendations are both ethical and socially
responsible.
You recommend a Compliance Program which will ensure that
actions by the company will be monitored to ensure they are

both ethical and socially responsible.
You explain how performance will be measured using Triple
Bottom Line Reporting.
Your Conclusion has succinctly, yet comprehensively
summarised how your recommended Marketing Mix will
implement and communicate your Brand Positioning. You have
shown how your Marketing Mix is internally-consistent. Your
Mix recommendations show creativity and independent thought.
You have explained why these recommendations are both
ethical and socially responsible.
Your Conclusion demonstrates a sophisticated analysis showing
an insightful understanding of marketing strategy.
You recommend a Compliance Program which will ensure that
actions by the company will be monitored to ensure they are
both ethical and socially responsible.
You explain how performance will be measured using Triple
Bottom Line Reporting.
Presentation, format and
attention to detail
(5%)
The report is reasonably well organised.
Acceptable standard of attention to detail (grammar, spelling,
expression).
The report is well organised and communicates ideas reasonably
well.
Good standard of attention to detail (grammar, spelling,
expression).
The report is well organised and communicates ideas well.
High standard of attention to detail (grammar, spelling,
expression).
The report is very well structured and cohesive and
communicates ideas very effectively.
Excellent attention to detail (grammar, spelling, expression).
Does not exceed Max Word Limit
Referencing

(10%)
Harvard style referencing is evident in parts of the report (in-
both text referencing and references list); however,
improvement in correct style and consistency is required.
At least 2 Academic and at least 7 Business References cited.
An attempt at referencing for Harvard style is evident
throughout most of the report, (both in-text referencing and
references list), with improvements required in consistency. At
least 2 Academic and at least 7 Business References cited.
Correct referencing for Harvard style is evident throughout
most of the report (both in-text referencing and references list),
with only minor corrections required. At least 2 Academic and
at least 7 Business References cited.
Correct referencing for Harvard style is evident throughout the
whole report (both in-text referencing and references list).
More than 10 References cited of which at least 2 are Academic
and at least 7 are Business References.
Section
Credit Requirement in addition to Pass
Distinction requirement in addition to Credit
HD Requirement in Addition to Distinction
Exec Summary
Adequate summary; purpose, processes, findings, recs
Reasonably comprehensive; purpose, processes, findings, recs
Comprehensive and concise; purpose, processes, findings, recs
Introduction
Purpose & Scope with sufficient detail
Includes Authorisation and Limitations
Target Segment
Demonstrates learnings from Assn 3
Further analysis of data from Seg Attractiveness table. Why
Target is opportunity to grow sales.

Which brand strengths most important
Positioning
USP and why this USP appeals to the target segment
Criteria to justify USP
Map – other highly relevant axes
Creativity
other relevant factors for Posn
References
Statement includes all required elements
Two Maps
USP on Map
PLC stage
Classified
Data to support classification
Diffusion Adopters
Classified

Type of Consumer Prod
Classified
Product
3 levels concept
Linkage Brand Positioning > 3 levels
Maybe a further discussion of Branding
why effectively implements + communicates Position
Augmented level connection to additional benefits and/or
services.
Comprehensive, consistent, creative. Creativity and independent
thought.
3 level concept > Linkage to PLC & Diff
Judged very likely to increase sales
Place
Appropriate for Type, Intensity,
Linkage to Brand Positioning
Comprehensive, consistent, creative
Channel Structure + Retail display & retailer support
Clear linkage Type>Intensity>
Structures>Display & Support

why effectively implements + communicates Position
Linkage PLC & Diff
Maybe discussion of product availability and Logistics
Promotion
Message = Brand Positioning (or adaptation thereof)
Linkage Brand Positioning
Three promo tools, Why tools chosen
Linkage PLC & Diff
Price
Strategy – logical
Linkage to Type of Consumer Product
why this implements + communicates Position
Linkage to Intensity of competition
Price Comparison table
Linkage PLC & Diff

Conclusion
How recommended Marketing Mix implements & communicates
Brand Positioning to Target segment.
Compliance plan
Sophisticated analysis showing insightful understanding of
marketing strategy.
Explains how Marketing Mix is internally consistent.
Triple Bottom Line (TBL) – how performance measured.
TBL – Application includes sustainability
Explains why plan is ethical and socially responsible.
Explains how plan complies with CSR
Assignment 4 Marking Guide Page 2.docx

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