Business and Management Ia

Chatswood Stud, established in rural Victoria, 1972. This company is a provider of a number of horse breeding services to nearly 1000 clients. Throughout its 40 years of operation, the business has grown to become one of the leaders in Victoria's competitive horse industry. The most critical marketing issue facing Chatswood is the use of mass media advertising (above the line promotion). For this reason the question of "What impact would the further implementation of above the line promotional activities by Chatswood Stud of Seymour, Victoria have on the business?" has been asked and found through an array of both secondary and primary research. It is found that Chatswood's current means of promotion, whilst adequate, could be improved. This improvement will come through the utilization of a number of suggestions and could see Chatswood become the leader in the Victorian and Australian horse breeding industry.

INTRODUCTION

In the current business climate means of advertising have become increasingly significant for various reasons. Especially in the context of the business that is subject to evaluation, Chatswood Stud. "Chatswood" was established in 1972 in rural Victoria. Chatswood offers the services of horse breeding, agistment, horse management and foaling down. Chatswood belongs to the horse industry, where the rivals in this particularly competitive market include, Darley, Swettenham and Eliza Park. (Willis, G. (2012) Chatswood Advertising Interview) With this in mind it's important for the sake of Chatswood to account for the significance in how effective advertising can become through examining the effect on income, market share and customer growth. Where a review of current advertising methods is necessary as well as the provision of future promotional activities. Here the research into what impact would the further implementation of above the line promotional activities by Chatswood have on the business, will be fully investigated. This will to some extent determine future marketing procedures by Chatswood. The impact of the business examined will be on income, market share and customer growth. Promotion refers to the methods of communicating messages to the market with the intention of selling a firms product. With this definition the essay will include, the ways in which Chatswood already promotes. The effectiveness of current promotional activities should be measured, in turn; we can consider which future promotional activities will be most and least beneficial. The research through this investigation is of considerable interest to Chatswood with promotion regarded as an integral part of a business' success. The target audience needs to be convinced to engage in the firm's services. (Wells et al, Advertising: principals and practice) This essay will strive to benefit Chatswood Stud, specifically in the aspect of advertising.

METHODOLOGY

To approach our research question, of what impact would further implementation of above the line promotional activities have on Chatswood Stud, we will be examining our research from current clients in the form of questionnaires. This will hopefully provide the answers to some important questions from the target audience's perspective. Firstly, we must decide what information needs to be found and what questions will provide this knowledge. After this we can then proceed. Due to the number of questionnaires completed, only assumptions can be made. From these assumptions we could pertain the current climate of Chatswood's advertising, including its effectiveness, strengths and weaknesses. By entering our current clients mindset, we can develop strategies, which will be more effective for future marketing activities.

A happy, well informed customer base could indicate that current promotional resources are being allocated correctly. On the contrary, if research finds Chatswood's promotion as ineffective, measures will need to be taken to ensure this situation is rectified. From this we will then turn our attention to secondary data. The majority of this is from the Chatswood website (chatswoodstud.com.au), including information from the company itself and its clients. Through the process ongoing interviews will be held with managing director, Greg Willis. This will provide an insight into any current issues that Chatswood is facing.

DISCUSSION

Firstly, the means of which Chatswood already advertises will be evaluated. As a general synopsis, Chatswood largely focuses on the traditional objectives of promotion. To inform, persuade and remind. To create a unique identity and enhance the organisations image, Chatswood also adopts product differentiation techniques.

Chatswood operates in an oligopoly with 3 main competitors circulating the market. Chatswood should be mindful to retain clients in order to prevent them from converting to rival firms and market towards attracting new customers, potentially from these competitors.

Pull promotion is a general technique used by Chatswood. They use this tool to stimulate demand for their services. The business limits their promotion to mostly below the line advertising, due to the costs involved. Below the line promotion refers to the use of non-mass media promotional activities such as sponsorship or discounting. On the contrary, above the line promotion refers to the use of mass media sources that are carried out externally, such as television and radio to promote or establish a favourable long-term image of a business (P Hoang, Business and Management) With this in mind, we can look at what promotional avenues Chatswood currently utilizes.

There are two main groups, above the line and below the line. Due to limited financial resources and a relatively small client base in the market, not only Chatswood Stud but also other competitors rarely use ATL. (Willis, G. (2012) Chatswood Advertising Interview) Understandably, Chatswood rarely uses this form of promotion. However this could be somewhat of an opportunity for Chatswood to gain a competitive advantage. Chatswood's current above the line promotional mix includes:

Television advertising:

Chatswood has recently launched a television commercial campaign. With this being the most expensive promotional medium, it is very important to evaluate its effectiveness. (As seen in appendix 7)

Advantages:

- Due to large audience figures,