Dick Smith: The Great Adventurer

Case: Dick Smith: the great adventurer.

Contents

1. Situation Analysis---------------------------------------------------------------------------3

1.1 Objective of the case study-----------------------------------------------------------3

1.2 Market Size-----------------------------------------------------------------------------3

1.3 Analysis of marketing environment-------------------------------------------------3

1.3.1 External environment-------------------------------------------------------3

1.3.2 Internal environment--------------------------------------------------------4

1.4 The purchaser-------------------------------------------------------------------------4

1.5 Company analysis--------------------------------------------------------------------4

2. Consumer benefit and market segment---------------------------------------------------6

2.1 Consumer benefit---------------------------------------------------------------------6

2.2 Market segment-----------------------------------------------------------------------6

3. Financial & Marketing objective----------------------------------------------------------6

3.1 Financial objective and budget planning------------------------------------------6

3.2 Marketing objective------------------------------------------------------------------7

4. Marketing Strategy--------------------------------------------------------------------------7

4.1 Market demand-----------------------------------------------------------------------7

4.2 Promotional strategy-----------------------------------------------------------------7

5. Elements of marketing mix----------------------------------------------------------------8

5.1 Product---------------------------------------------------------------------------------8

5.1.1 Product features--------------------------------------------------------------8

5.1.2 Pack/outlet--------------------------------------------------------------------8

5.2 Distribution restructure--------------------------------------------------------------8

5.3 Pricing----------------------------------------------------------------------------------9

5.4 Promotion------------------------------------------------------------------------------9

5.4.1 Promotion Policy------------------------------------------------------------9

1.1 Objective of the case study

Dick Smith seen as the great adventurer is derived from his astute combination both of business and patriotism, rather than creating some disturbance for the multinational giants. He successfully operated his owned food company to fight back the trend that an increasing number of Australian brands are now foreign owned. By contrast, there are still a large number of business giants making profits daily. Despite Dick Smith's ability to raise the profile of the 'buy domestically' cause, it takes place that consumers are still wooed by brand names that aren't necessarily Australian. Even for the Dick Smith himself, he confessed "multinational can afford to lose money in the short term, knowing that in 10 years they can make it again. We, on the other hand, could never push ahead with a product if we were losing money. " (p671 Line 11). It showcases that there might be tight financial budget and challenge for the Dick Smith Food Company to expand its business and obtain the international market share.

Based on the background of sales domestically, this study tries to seek for the advisable solutions to develop a competitive strength in the international market.

1.2 Market size

Dick Smith has been successful in marketing target consumers such as ethnocentrism or nationalism for his food products by attaching his name to the 'buy Australian' cause. The following chart shows that the sales condition from October 2000 to March 2002.

October 4, 2000 March 31, 2002

Retail Sales 27.8 million 152.65 million

It could be obviously seen that the sales in 2002 has four-folder than in 2000.

1.3 Analysis of marketing environment

1.3.1 External environment

* Opportunities

According to the definition of types of opportunities, the framework concluded: Market penetration, Market development, Product development and Diversification as a whole. At the first penetration stage, the driving force of Dick Smith Foods company stemmed from the realization that in Australia 85 per cent of the products in a typical supermarket trolley are either foreign owned or imported. Influenced by the background of global economy recognition, the Dick Smith Foods appealed many Australians to turn their focus back to their own.

While the company promoted its first product in the market, it was very astute to cater strong sentiments of ethnocentrism or nationalism--emphasis on a country's interest above all else at the second stage of opportunities is the Market development. Consumers in the same country usually share a common political environment, but this environment can have a dramatic effect on opportunities at a local or international level. As the slogan says: "If you buy a product with 'Dick Smith Foods' on it--it is as Australian as you can get." The market development strategies in Dick Smith Company displayed the target mind aiming at satisfying the need of the object consumer group clearly. Low cost in advertising obtained high efficient and profitable rewards in advertising