Brand Australia: Market Segmentation and Sizing (Research Paper Sample)

BRAND AUSTRALIA
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Brand Australia: Marketing, Consumer Behaviour and Native Cultures
As per the resource-based view of strategy, brand is a key intangible asset that gives an entity a competitive advantage. The entity may be an organization or a country. In this case the latter applies. A brand may be defined as a term, name, symbol, sign, a design or a combination of these, that serves as an identifier of the seller or maker of the service or product (Kotler & Armstrong, 2012). A strong “Brand Australia” will give Australia a competitive advantage over other countries that sell similar products and services. The accruing benefits are numerous. A strong brand will enhance tourist attraction. This is important considering the fact that Australia is now emerging as a preferred destination for Asian visitors and other internationals who are fascinated by the Australian culture and infrastructural development. Improvement in tourist attraction will lead to an improvement in the economic well-being of the country with the financial contribution of the economic sector increasing. For a strong brand to be created, there is need to focus on the potential and existing consumer demand perspective as opposed to a supply perspective. To achieve this end, creating consumer-centric products and promotions that are underpinned by an understanding of consumer behaviour is key. The following discussion has as its aim the creation of “Brand Australia”. Australia being one of the emerging wine making powerhouses, the essay will look at “wine tasting” as part of the brand. The discussion will have as its focus market segmentation and sizing, product creation and marketing communications.
Market Segmentation and Sizing
In order to be able to adequately create an Australian brand, there is need to first identify the markets for various products and then segment and size these markets. By market segmentation, the implied meaning is the division of the identified market into smaller segments on the basis of their needs, behaviour and characteristics which may need different marketing mixes or strategies (Biggadike, 2001). When segmenting the Australian market, the aim will be to aggregate those who are viewed as prospective buyers into groups having common needs and those that are likely to respond in the same manner to marketing action. Putting these prospective buyers into groups is made possible by their homogeneity. Kotler and Armstrong (2012) propose four requirements to consider when segementing a market. The requirements are that the segments must be measurable, accessible, substantial and differentiable. When segmenting the market, geographic, demographic, psychographic and behavioural characteristics will be considered.
Geographic segmentation refers to the dividing of a market into different geographical units such as regions, cities, nations, counties or neighbourhoods. This segmentation will apply mainly in the tourism sector. The tourism's market is segmented in terms of regions. These regions include Australia, the Americas (Brazil, Canada and USA), Europe (Italy, Germany, United Kingdom and France), Greater China (Hong Kong and China), New Zealand, Japan and Korea and South and South East Asia (Malaysia, Singapore, Indonesia, India, Gulf countries and Vietnam). These market regions have been arrived at on the basis of their market needs. For example, what attracts South Eastern Asians may be different from what attracts Europeans. From the regions identified, it is clear that the focus is on the global markets representing the greatest potential.
Demographically, the market will be divided on the basis of the variables of age, gender, income and nationality. Buttell (2009) observes that age is the most popular basis for segmenting the market due to the fact that consumer wants, usage and needs often vary closely with demographic variables. Also, demographic variables are easier to measure than say, pyschographic or behavioural variables. As a key component of the Australian Brand, wine tasting will be segmented demographically. This will be done on the basis of age and income. Being an alcoholic beverage, the market for wine will be those individuals who have attained adult age as per Australian regulations, that is, eighteen years and above. Wine consumption in Australia also varies with gender. 26.10% of male alcohol drinkers take bottled wine while the figure for female drinkers stands at 73.90%. For fortified wine, the figure is 36.3 for male and 63.8 for female (Dawes, 2008). This implies that for wine tasting, the market should be segmented considering the fact that women are likely to form a big proportion of the market. In order to effectively market wines, the market will also be segmented in terms of income. Variations in wages means that not everyone can afford premium brands of wine. Wine brands will be made such that they are customized in terms of the income of the market segment. Premium brands will target high earners while there will also be brands aimed at ordinary people.
Psychographically, the market will be divided into different segments on the basis of lifestyle, social class or personality characteristics. To understand the psychographic behaviour of consumers, there is need to look into consumer behavior theories. By definition consumer behaviour refers to the decision making process and physical activity that is inovlved when acquiring, evaluating or making use of or disposing goods or services (Keller, 2001). This means that for a consumer, it is not just the buying of services and goods that receives their attention, but the process begins before acquisition and buying of goods is done. Consumers go to the market conscious of what people will perceive them. The products that consumers buy act as a reflection of their lifestyles. This is especially the case for wine, with people who consume premium brands being perceived as belonging to a high social class. In tourism, there is a high likelihood that those who visit the country are out to seek adventure. The country will therefore have cruise lines that will be targeting adventure seekers. By segmenting the market in terms of psychographics, the “Brand Australia” is likely to succeed.
Behaviourally, the buyers will be divided into segments on the basis of their attitudes, knowledge, responses or uses of a product. With regard to behavioural segmentation, a market may be divided on the basis of occasions, benefits sought, user status, usage rate and loyalty status. Occasions refer to those times when buyers get the idea to buy. For example, there is a tendency to take wine after a meal. Also, highly educated individuals are likely to judge wine differently. For example, this group of individuals have a preference for wine that is branded in terms of grapes quality as opposed to where the grapes are originating, which is the traditional approach followed in countries such as France (Kizil et al., 2013). Behaviour is also determined by the culture and sub cultures existing in the country. For example, if in some region people believe wine must be part of a meal to make it complete, then such individuals are likely to ensure that there is always some wine in the house.
The market size for “Brand Australia” may be defined both locally and internationally. The “wine taste” brand will be established considering the size of the largest wine consuming countries. France and Italy lead the way with a per capita annual consumption of 53 litres followed by Germany with 37liters, the U.K. with 25 litres, Spain with 24 litres, the United States with 13 litres, Russia with 7 litres and China with 3 litres. In terms of overall consumption, France leads with 30 million hectolitres per year followed by the US with 29 million, Italy with 23 million, Germany with 20million, China with 17 million, the U.K. with 13 million, Russia with 12 million and Spain with 10 million. In terms of wine production, Australia ranks seventh after France, Italy, Spain, United States, Argentina and China. Australia forms part of the “new world” of wine producing countries, meaning that it is growing (Dawes, 2008). Appropriate marketing of the Australian brand will ensure that the country will be able to increase its international market share. This is especially considering reports that are projecting Australia as poised to be the centre of gravity between the U.S and China in terms of wine production and supply.
Product Creation
Key to a strong Australian Brand are the products and services that will give Australia a competitive edge over other nations. A product may be defined as anything which can be offered to a market for acquisition, use, attention or consumption and that whose desired end is the satisfaction of a need or a want. A service on the other hand refers to an activity, satisfaction or a benefit that is offered for sale and that which is intangible and therefore does not result in the ownership of anything (Kotler & Armstrong, 2012). Before proposing the best product creation for “Brand Australia” it is important that the concept of product and service decisions is addressed.
When marketing, one makes decisions at three key levels. Product line decisions, product mix decisions and individual product decisions. With regard to individual service and product decisions, decisions are made on the basis of product attributes, branding, how the product or service is packaged or labelled and the suppo...