Due Date: Sunday, 1st November · extremely simplified. 3. Marketing System 1.0 All objectives were...
Transcript of Due Date: Sunday, 1st November · extremely simplified. 3. Marketing System 1.0 All objectives were...
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 1
AMB240MarketingPlanningandManagement
QueenslandUniversityofTechnology
ReflectiveCaseStudy
MikaelaSpencer
DueDate:Sunday,1stNovember
Tutor:RoryMulcahy
WordCount:1835
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 2
ExecutiveSummaryThisreflectivecasestudysummarisesthetrialsandtribulationsevaluatedinregardstothe
QUTopianbusiness‘FlowersareForever’.Throughoutthisreporttheoutcomes,issuesand
alternativesforthebusinesswillbeinvestigatedandassessedonthepositivesandnegatives
ofthecompaniestrading.FlowersareForeverhadaimedtoobtaina40%marketshareand
aprofitabilityof20%withafinalsalesfigureofQ$490.
Thebusinesshadcustomisedmarketingstrategiesinordertoavoidthreatsandweaknesses
andtotakeadvantageofmarketopportunitiesandstrengths.AsFlowersareForeverwere
the only retailer selling flowers, we had a niche position in themarket that allowed the
businesstoexploittheindustrytothecompany’sadvantagebyofferingbundlingservicesand
apremiumqualityproduct.
Theproductwastargetedatthe‘youngoptimists’segmentof18-24-year-oldfemales.Due
tothefacttheproductwastargetedatthisparticulargroupwhomfocuslessonpricesand
moreontheproduct,askimmingstrategywasusedalongsideacost-pluspricingmethod. A
pullpromotionalstrategyalongsideadirectsocialmediamarketingcampaignwasusedto
penetratethetargetmarketthroughtheiruseoftechnology.
Unfortunately, not all marketing objectives were achieved as the business suffered an
astounding -172.86%profitability and a $1200 deficit. Also only a 10%market sharewas
achievedandtherewasahandoveroftwelveunits.However,itwaspositivetonotethatour
promotional strategy functioned and the business attained an enthusiastic social media
following.
Threekeyproblemswereidentifiedthroughoutthisreportasthestockpurchase,inabilityto
sellproductandpricefluctuation.Thesematterswereexaminedandalternativesolutions
wereconsideredinordertosolvethedifficulties.Thesolutionschosenforeachdrawback,
respectfully, are limiting stock purchase, conducting further market research and
implementingaminimumsellingprice.
Byconsideringtheproposalsinthisreport,itwillenablefutureQUTopian’swithsupportin
runningthenextmarketdaysimulation.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 3
TableofContents
ExecutiveSummary..................................................................................................................2
1.0 SummaryofMarketingOutcomes...............................................................................41.1 Themarketingobjectives......................................................................................................4
Table1.1.1OutcomeofMarketingObjectives..............................................................................41.2 Salesandproductionoutcomes............................................................................................5
Table1.1.2SalesandProductionOutcomes.................................................................................51.3 FinalProfitandLossStatement............................................................................................5
Table1.3FinalP&LStatement.....................................................................................................51.4 MarketShareCalculations....................................................................................................6
2.0KeyIssuesarisingfromtheQUTopiaSimulation................................................................6
3.0ProblemIdentification........................................................................................................83.1ProblemOne:StockPurchase.......................................................................................................83.2ProblemTwo:InabilitytoSellProduct.........................................................................................93.3ProblemThree:PriceFluctuation................................................................................................93.3ProblemThree:PriceFluctuation(continued)...........................................................................103.4SummaryofProblems................................................................................................................10
4.0 StatementandEvaluationofAlternatives.................................................................114.1 SummaryofAlternatives....................................................................................................11
5.0 RecommendationsofAlternative..............................................................................135.1 RecommendationforProblemOne....................................................................................135.2 RecommendationforProblemTwo....................................................................................135.3 RecommendationforProblemThree.................................................................................145.4 SummaryofRecommendations..........................................................................................14
6.0 References..................................................................................................................15
7.0Appendices.......................................................................................................................167.1ConsumptionPatternData........................................................................................................167.2ProjectedBreakEvenStatement...............................................................................................167.3ActualBreakevenStatement.....................................................................................................167.4ProjectedP&LStatement.........................................................................................................177.5ProjectedSalesandProductionReport.....................................................................................177.6OriginalSalesProjection............................................................................................................18
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 4
1.0 SummaryofMarketingOutcomes1.1 Themarketingobjectives
Table1.1.1OutcomeofMarketingObjectivesOverthecourseofthesimulation,FlowersareForeverwasonlysuccessfulinmeetingoneof
itsmarketingobjectivesandfailedtoachieveallothers.Thesefailuresareshownbelowon
Table1.1.1.
Objectives Metric Outcome
Achieveaminimumof40%marketsharebytheendofthesecondmarketday
MarketShare Thiswasnotachieved.
10%marketsharewasgainedbytheendofmarketdaytwo.
Achieve20%profitabilitybytheconclusionofmarketday2
Profitability Thiswasnotachieved.
FlowersareForeverhadadeficitof-172.86%.
Marketday1:achieve60%customersatisfaction.
Marketday2:achieve80%customersatisfaction.
CustomerSatisfaction
Thiswasnotachieved.
Asitwasnotmeasured,itwasnotachieved.
Achieve35%customerloyaltyatthecloseofmarketday2
Customerloyalty Thiswasnotachieved.
Asitwasnotmeasured,itwasnotachieved.
Toachieve15likes/followsdepictingbrandawarenessbymarketday1and25bymarketday2.
Brandawareness Thiswasachieved.
BytheendofMarketDayTwotheFlowersareForeverpageachieved80likes.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 5
1.2 SalesandproductionoutcomesTable1.1.2SalesandProductionOutcomesTable 1.1.2 outlines the sales price, units produced, units sold, stock on hand and total
turnoveroverbothmarketdaysforFlowersareForever.
1.3 FinalProfitandLossStatementWhenanalysingthedifferencesbetweentheprojectedprofitandlossstatement(appendix
7.4)andthefinalisedprofitandlossstatementpicturebelow,therearemanyinconsistencies
andchanges.Themostsignificantchangebetweenthetwostatementsisvariationofthenet
profitandorganisationprofitability.Intheprojectedprofitandlossstatement,arevenueof
Q$490andaprofitabilityof20.42%wasexpectedtobemade,unfortunatelythebusiness
suffereda lossof$1210andanabysmalprofitabilityof -172.86%.Thesedifferenceswere
createdbecauseofalackofsalesandaconstantloweringoftheregisteredretailpriceofthe
product.
Table1.3FinalP&LStatement
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 6
1.4 MarketShareCalculationsOriginally,FlowersareForeversetthegoalofobtaininga30%marketsharebytheconclusion
ofmarket day two. As shown below, only a 10.09%market sharewas obtained and the
company’sdirectcompetitor,WishingPotCo.,managedtoobtaina36.89%marketshare.
2.0KeyIssuesarisingfromtheQUTopiaSimulationThefollowingtablewasdevelopedinordertoanalyseandreflectuponthesuccessand/or
demiseofthemarketingplaninregardstohowwellthebusinessranoverthetwomarket
days.
1. FinancialAnalysis1.0 AccordingtoFlowersareForever’sprojectedprofitandloss
statementproducedinappendixthree,thebusinesshadanestimatedprofitabilityof20.42%andatotalrevenueprojectionof$490.Unfortunately,thebusinessreceivedadeficitof-172.86%profitabilityandalossof$1210.
2.0 Originalassumptionsmadebyouroriginalforecastsput
salesof80rosesandonhandstockleftat20.Ultimatelywesold60andhadonhandstockleftat12.
3.0 Theoriginalbreakevenputtheunitsat64andthefinal
breakevenputtheunitsat169.However,thereasonforthatisbecausetheforecastedbreakevenputthepriceperunitatastableQ$30buttheactualbreakevenwasdifficulttomeasureasthepricesfluctuatedonthesecondmarketdaysignificantly.Alsotheforecastedbreakevenhadexpectedunitsalesat80andthefinalbreakevenhadunitsales72.
4.0 Duetothefacttherewassomuchstockleftatthelatter
endofmarketdaytwo,stockwasdecidedtobesoldandvaryingpricessothattherewasnotanabundanceleftover,howeverthismeantthatmostofthestockwassoldatbelowcostprices.
1.0 Negative:financiallythebusinessstruggledimmenselyanddidnotmeetprofittargets.Thiswasduetothelimitedsalesofproductthatforcedtheteamtolowerthesalespricetobelowcostonthefinalmarketday.
2.0 Neutral:althoughonly60unitsweresold,therewaslessonhandstockleftmeaningthattherewaslesswastage.
3.0 Negative:althoughtheunitswherelower
onthefinalbreakevenanalysis,astheforecastednumbertosellwashigher,that’swhythenumberwaslower.Ultimatelythebusinessstilllostmoney,regardlessofthebreakevenanalysisasthepriceperunitfluctuatedmassively.
4.0Negative:becausethebusinesshadunanticipatedtheneedofthemarket,toomuchproductwasboughtwhichresultedinitbeingsoldbelowcost,effectingthebusinessesfinancessignificantly.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 7
2. CompanyAnalysis1.0 Tasksweredisseminatedaccordingtotheteammember’s
roleinthecompany.Thisensuredourdeadlinesweremetaseveryonehadtheirallocatedtasks.
2.0 Theteamworkedwelltogetherandsupportedeachother
whenneeded.TherewasaprivateteamFacebookpagecreatedinorderforeverymembertokeepintouchwhichbecameincrediblyusefulwiththecreationofthemarketingplan.
1.0 Positive:allocatingtasksaccordingtomember’spositionsensuredthateverymemberwasawarewhatwasexpectedofthemandensuredthatnomemberhadless/moreworkthananother.
2.0 Positive:overalltheperformanceoftheteamwasoutstanding,thecommunicationwehadflowinghelpedmakethemarketdayprocessextremelysimplified.
3. MarketingSystem1.0 Allobjectiveswereattainable,timely,realisticand
measureable.Unfortunately,theimplementationofthemeasurementofthegoalsdidnotroutinelyoccur
2.0 WithregardstothepromotionofFlowersareForever,our
socialmediachannelswereincrediblypopularwithourFacebookpageamassing80likesandourInstagrampagebeingfollowedby24people.AccordingtotheFacebookpagedata,thepagewasmostseenaroundmarketdayone.
3.0 Inthemarketingmix–flowersareforeverstrategy,itispresentedthatthe“youngoptimist”segmentisafairlyinelasticpricingmarket.Thiswasnotsupportedatmarketdayasthepricingoftheproductchangeddrasticallycomparedfrommarketdayonetomarketdaytwo.
1.0 Neutral:allofthesetgoalsaccordedwiththe“SMART”framework,howevertheexceltablethatwasbeingusedtomeasurethesegoalswasnotconsistentlyusedduringmarketdays.
2.0Positive:thesuccessofthebusinessessocialmediachannelsensuredthatourmarketingmix–promotionalstrategieswerecorrectthroughfocusingonthe18-24-year-oldtargetmarket.3.0Negative:Asthebusinessprojectedthechosenmarketwasaninelasticpricingsegment,thismeansthebusinesswasunderpreparedformarketdaytwomeaningthatwhenpriceswerelowered,therewasnostrategyorplantothepricelowering,itwascompletelywithoutstrategy.
4. CustomerAnalysis1.0 Allfeedbackcollectedbythebusinesswasnegative.
Consumersusedwordslike“tacky,unnecessaryandlousy”
2.0 Theforecastedtargetmarketof18-24-year-oldagebracketwhofellintothe“youngoptimist”segment.Whenpresentedwiththefinalconsumptionpatternresults,itshowedthatourvaluepropositionmadethebusinessanemotionalpurchase,characterizedbytheyoungoptimistsegment.
3.0 Unfortunately,customerdemandwasnotdetermined
correctly,resultinginhavingtoselltheproductsimmenselybelowcost.
1.0 Negative:thefeedbackfromcustomersshowswhythebusinesshadsuchaproblemsellingflowersuntiltheywerebelowcost.
2.0 Positive:thisshowsthatthebusinesscorrectlyidentifiedthetargetmarketandthebusinesspenetratedthemarketcorrectly.
3.0 Negative:thisshowsthatthebusinessoverestimatedthedemandfortheproduct.
5. CompetitorAnalysis1.0 PriortoMarketDayOne,FlowersareForevercorrectly
identifiedthethreecompetitorsasSeeYouinSaigon,theWishingPotCo,andCoffeeCozies.
2.0 ThebusinesscorrectlyidentifieditsmaincompetitorastheWishingPotCo.asoutofthethreecompetitors,theyachievedthehighestmarketshareof36.89%
1.0 Positive:asthebusinessescompetitorswerecorrectlyidentified,thismeansthattheplacementandpromotionalstrategieswerecorrectintermsofbattlingthecompetitors.
2.0 Positive:asthecompetitorswereeasilyidentifiable,itwasclearthatintheoriginalmarketingplan,FlowersareForevercorrectlyidentifieditscompetitors.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 8
3.0ProblemIdentificationAfteridentifyingtheissuesarisingfromthemarketdays,threekeyproblemswerechosenfor
analysationasthesemattershaveeffectedthebusinessmoreoveranyother.Thechosen
complicationsforinvestigationincludeissuesofstockpurchase,theinabilitytosellproduct
andpricefluctuation.
3.1ProblemOne:StockPurchaseDuetothebusinesses initialcollectionofdata, itwasthoughtthattheproductswouldbe
hold an extremely successful market share percentage, however this turned out to be
drasticallyincorrectastheteamdiscoveredstockwasoverpurchasedtothepointwhereit
wasbeingsoldbelowcostonthefinalmarketdaysothattherewasnotanabundanceof
handoverstockleftafterthecompletionofmarketdaytwo.
The business purchased so much stock that even though prices were being lowered to
ridiculousprices,therewasstilltwelverosesleftaftermarketdaytwo.Astheendofmarket
daytwocametoaclose,thecompanybecameimpedinglyawareofthefactthattherewould
beanabundanceofstock left.Atthehalfwaypointofmarketdaytwo,therewasstill25
roseslefttosellandtobreakevenatthecompany’soriginalsellingpriceof$30,aminimum
of64roseshadtobesold.
Duetothefactthebusinesshadsomuchhandoverstock,anexecutivedecisionwasmadeto
selltherosesatwhatevertheconsumerwaswillingtopayfortheminthelast10minutesof
marketdaytwo.Thisleadtorosesbeingsoldwaybelowcostandeventhoughtherewasonly
twelve units of handover stock, due to the fact that roses were being pushed onto the
consumertobuyforaslittleas$40for12roses,thisleadtothebusinessnotbreakingeven.
Thisoverpurchasingofstockwasduethefactthecompanyexpectedahighernumberof
salesofthecourseofthetwomarketday.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/2015 9
3.2ProblemTwo:InabilitytoSellProductFlowers are Forever faced great difficulty with the sale of their only product, the hand
colouredartificial roses.This lackof interest identifiesa low-levelofproduct involvement
from consumers, which is essential in creating passion within the customers (Solomon,
Russell-Bennett and Previte, 2010). As the roses were the sole product created and
mentionedinthemarketingmix,thebusinesscannotexpecttoflourishbyofferingaproduct
totheconsumersthathasnoproductinvolvementfromthetargetedmarket.(Solomonet
al.,2009)
Thelackofsalesandinterestfromconsumersalsopresentstheissuethatthemarketresearch
conductedbytheteamwasofpoorquality.Marketingresearchisdefinedasanessentialaid
inmakingeffectivemarketingdecisionsasdescribedbyZikmund,2011.Althoughtherewas
asuccessfulpublicrelationscampaignconducted,furtherresearchwasnecessaryinorderto
trulygraspthetargetmarketanditsneeds.
3.3ProblemThree:PriceFluctuationOneofthebiggestissuesthatfacedFlowersareForeverwastheinconsistencyofthepricing
structurewhichoccurredonmarketdaytwo.Thereasonwhythebusinesswassignificantly
unsuccessfulwasduetothefactthatflowersweresoldbelowcostinthelatterhalfofmarket
daytwoastoavoidhavinghandoverstock.
Onmarketdayonethebusinesssoldatotalof20ofthe72flowers,thisconcerninglowrate
of sales onmarket day one should have instilled in the team to produce a tiered pricing
schemesothatthebusinesscouldgraduallyloweritspricesoverthecourseofmarketday
two so as to not impact the financial viability of the business. As Flowers are Forever
continuedtomarkettheflowersasaskimmingpricingstrategyproduct,itwassustainable
formarketdayone,butthebusinesscouldnotsupportitselfonmarketdaytwowhenthe
pricesoftheproductswerecontinuallyloweredandloweredwithoutanactualstrategyput
inplacebytheteam.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/201510
3.3ProblemThree:PriceFluctuation(continued)Asthepricesoftheproductswere“bartered”betweenthebusinessandtheconsumer,and
thispricingstrategywasnotdiscussedpriortomarketdaytwo,thisisthesolereasonasto
whythebusinesslostmoney.Withregardstothebarteringsystem,therewasnominimum
salepricediscussedbetweenthemembersoftheteam,itwasjustbasedonhowmuchmoney
the consumer was willing to spend. Before the commencement of market day two, the
flowers are forever team should have discussed theminimum sale price if the bartering
systemwastobeused(Magenheim,1988).
3.4SummaryofProblemsThroughouttheQUTopiaSimulation,FlowersareForeverdidnotachievemostobjectivesset
intheoriginalmarketingplan.Theoverallproblemthatlinkedthesethreeissuesistheover
purchasing of stock. If there was not an abundance of stock to sell, the issues of price
fluctuationandinabilitytosellstockwouldhavebeenlessapparentandthebusinesscould
havepotentiallybeenmorefinanciallysuccessful.Thelinkingofthesekeymatterspresents
thefactthatproblemscanstemfromthesmallestofissues.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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4.0 StatementandEvaluationofAlternatives4.1 SummaryofAlternatives
AsanalysedaboveinSection3.0,thekeyproblemseffectingFlowersareForeverbeingstock
purchase, inability to sell product and price fluctuation. These matters will now have a
numberofalternativespresentedandthesepropositionswillbeexaminedthroughoutTable
4.1SummaryofAlternatives.
Problem AlternativeSolutions AnalysationofSolutions
StockPurchase 1. LimitStockPurchase(Kotler,etal)
2. Recalculatemarketshareandproductdemands(Babin,2011)
1. Advantages:• Decreasedhandoverstock• Stockcouldhavebeenreordered
whenneeded1. Disadvantages:
• Potentialforlowersalesduetolowerstock
2. Advantages:
• Abetterunderstandingofunitstoorderwillbeknown
2. Disadvantages:• Asthiswasabrandnewbusiness
andalldatacollatedwouldhavebeenbeforetheproductswereonsale,itwouldbedifficulttograspcorrectlythetargetmarketsactualdesirednumberofunitstopurchase.
InabilitytoSellProduct
1. Conductfurthermarketandproductresearch(Zikmund,2011)
2. Reducingthepriceonmarketdayone(Kotler,etal)
1. Advantages:• Adeeperunderstandingofwhatthe
targetmarketwasexpectingcouldbeconducted.
• Afurtherdevelopmentofproductlinescouldbedeveloped
1. Disadvantages:• Couldbeartheissuesofbeing
timely,costlyandstillbeineffective.
2. Advantages:• Thismayenticecustomerstobuy
morestockonthefirstmarketday,alsoreducingtheriskofhandoverstock
2. Disadvantages:• Loweringthepricecouldeffectthe
potentialprofitmarginsofthebusiness
• Willhavetosellmoreproductunitstomakeaprofit.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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PriceFluctuation 1. Implementingaminimumsellingprice(Zikmund,2011)
2. Implementingarigidpricingstrategy
1. Advantages:• Financestrategytoensurethe
successofthebusiness• Theteammemberscouldbarter
individuallywitheverycustomertoensureacompromisingdealwasmadebetweenthetwoparties
1. Disadvantages:• Ifaminimumpricewasset,team
membersmaynothavesoldasmuchproductastheywouldhavestuckto.
2. Advantages:• Ifadopted,arigidpricingstructure
wouldmeanthattheroseswouldsellforapricetocovertheircostandearnrevenue,butwouldstayatthatprice,avoidingconfusionwithintheteam.
2.Disadvantages:• Thebusinesscouldlosesalesinthe
finalquarteronmarketdaytwoastheirsalespriceisnotlowering,likewitheveryotherbusiness
• Handoverstockwouldbeadefinite.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
MikaelaSpencer StudentNumber:n9456171 DueDate:1/11/201513
5.0 RecommendationsofAlternative5.1 RecommendationforProblemOne
Forproblemone, theoverpurchasingofstockunits, I recommendthe implementationof
alternative one, limiting stock purchase (Kotler, et al). This recommendation will aim to
decreasehandoverstock, reducethenegativeprofitabilityof thebusinessandreducethe
financialstrainonthecompany.
The over purchasing of stock units effected themarketing objectives of achieving a 40%
marketsharebytheendofmarketdaytwoandachievinga20%profitabilitybytheendof
marketdaytwobyhavingtosellstockatawellbelowcostpriceinordertomovestockon
thesecondmarketday.
The limitingofpurchasing stockunits to25unitspermarketdayhelps support the same
marketingobjectivesbyreducingtheriskofhavingtosellstockatbelowcostpricesbecause
oftheriskofhavinganabundanceofhandover,itreducesthecostofcapitalcontributionof
thebusinessasareducednumberofstockwillbeboughtandtheriskofhandoverstockwill
bedecreased.Stockshouldonlybereorderedifneededformarketdaysbutiscappedat25
unitspermarketday.
5.2 RecommendationforProblemTwo
Forproblemtwo,theinabilitytosellproduct,Irecommendtheimplementationofalternative
one,conductingfurthermarketresearch(Zikmund,2011).Thisrecommendationwillhelpthe
businessbetterunderstandingofwhatthetargetmarketisexpecting,anypotentialbrand
linesthatcouldbeexpandedandthepotentialforbroadeningthebrandstargetmarket.
According to Sweeney and Soutar (2001), consumers do not only consider the price and
function of a product, but also their intrinsic value including aesthetic, hedonistic and
symbolicqualities.Thisresearchsuggeststhatifaconsumerhasanattachmenttoaproduct,
beitemotionalorsocial,theyaremorelikelytopurchasethegood.Byconductingfurther
marketresearch,FlowersareForevercouldgraspabetterunderstandingofwhat intrinsic
valueseffectthetargetmarketandinturnwouldresultinahighernumberofsales.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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Theinabilitytosellproducteffectedthemarketingobjectivesofachievinga40%marketshare
bytheendofmarketdaytwoandachievinga20%profitabilitybytheendofmarketdaytwo
bynotmeetingtheforecastedsalesandbudgetrequirements.Byconductingfurthermarket
researchthiswouldhelptoachievethesamemarketingobjectivesastherewouldbeaclear
ideaofhowtoproperlypresentandmarkettheproductbyusingthenotionofpowerand
manipulationoverthetargetedmarket.
5.3 RecommendationforProblemThree
Forproblemthree,pricefluctuation, I recommendthe implementationofalternativeone,
implementingaminimumsellingprice.Thisrecommendationwillaimtofinancialstabilise
the business, be able to sell on a time-based pricing structure and give the business the
opportunitytobarterwithitsclients.
Theissueofpricefluctuationeffectedthemarketingobjectivesofachievinga40%market
sharebytheendofmarketdaytwoandachievinga20%profitabilitybytheendofmarket
daytwobynothaveaclearfinancialdirection inthecompany. Ifall teammemberswere
aware of financial goals to hit and a minimum selling price to stick to, these marketing
objectiveswouldhavebeenachieved.Byimplementingaminimumsellingprice,thissupports
themarketingobjectivesbyhavingtheteamawareofthelowestcosttheproductcouldbe
soldfortoindividualcustomersinsteadofjust“whatevertheywerewillingtopay”
5.4 SummaryofRecommendations
To summarise, inorder to combat the threekey issuesof stockpurchase, inability to sell
productandpricefluctuation,facedbyFlowersareForeverduringtheQUTopiaMarketDay
simulationthesolutionsoflimitingstockpurchase,conductingfurthermarketresearchand
implementingaminimumsellingprice,isrecommendedinordertosupportthebusinesses
marketingoutcomessetintheoriginalmarketingplan.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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6.0 References
Magenheim, E. and Murrell, P., “How to Haggle and Stay Firm: Barter as Hidden Price
Discrimination”,EconomicInquiry,26(3),July1988.
Russell-Bennett, Rebekah, Josephine Previte andNadia Zainuddin. 2009. “Conceptualising
valuecreationforsocialchangemanagement.”AustralasianMarketingJournal17(4):211-
219.
Solomon, Micheal R., Rebekah Russell-Bennett, and Josephine Previte. 201 Consumer
behaviour:buying,having,being.2nded.FrenchsForest,NSW:Pearson.Solomon,Hughes,
Chitty,Fripp,Marshall,andStuart.2009.Marketing:realpeoplerealchoices.1ed.Frenchs
Forest,NSW:Pearson.
Solomon, Hughes, Chitty, Fripp, Marshall, and Stuart. 2009.Marketing: real people, real
choices.1sted.FrenchsForest,NSW:Pearson.
Sweeney, Jillian C. and Geoffery N. Soutar. 2001. “Consumer perceived value: the
developmentofamultipleitemscale.”JournalofRetailing77(1):205-222.
Zikmund, William G., Steven Ward, Ben Lowe, Hume Winzar, and Barry J. Babin. 2011.
Marketingresearch.2nd.SouthMelbourne,VIC:CengageLearning.
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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7.0Appendices7.1ConsumptionPatternData
7.2ProjectedBreakEvenStatement
7.3ActualBreakevenStatement
AMB240 MarketingPlanningandManagement ReflectiveCaseStudy
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7.4ProjectedP&LStatement
7.5ProjectedSalesandProductionReport
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7.6OriginalSalesProjection
MarketPotential 276
TargetMarketSize 100
PurchaseFrequency 2
EstimatedMarketshare 40%
SalesForecast 80items