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AMB240 MARKETING
PLANNING AND
MANAGEMENT
Reflective Case Study
Word Count: 2748
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Using the SMART framework, marketing objectives were formed before the
commencement of the QUTopian market simulation. Analysis of these
objectives found that only one out of the three were achieved. The
established objectives included:
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1. Financial Situation
3.Marketing System
Negative Positive
- There was a significant lack of - Improvements to both branding and
roaming sales with team members packaging were made on market
only keeping close by to the stall to day 2 which allowed for more
draw people in causing less brand customers to become aware of the
and product awareness business (and therefore make a
- Branding on market day 1 was purchase)
lacking which may have led to a - The stall purchased was effective as
lack of recognition or knowledge of it allowed us to have a clear front to
our brand and products to potential show off our products with a large
consumers amount of space for the rest of the
- Promotion and Product in the team to schmooze potential
market mix failed to take into customers walking past (Appendix
account the importance of 6.0)
branding and packaging with - Printing facilities and paper for all
minimal packing available on our designs and prints were supplied
market day 1 to us so the business didnt incur the
- The Facebook page was used only extra production costs
sparingly and didnt have - The theming of the products were
interaction or involvement with very popular with consumers
customers (Appendix 5.0)
- An online survey was posted on the
business Facebook page and did
not reach the audience numbers
the business was hoping for which
means it was difficult to use the
information gained for decision
making purposes (Appendix 7.0)
- The business was unable to match
production demand as some
products were overestimated
(prints) while other specific designs
(pokemon wallets) were
underestimated
- The business brand positioning
didnt align with why customers
purchased the products (more so
for functionality as opposed to
social value, i.e. environmentally
friendly) (Appendix 8.0)
4. Customer Analysis
Negative Positive
- Target market was not identified - Customers felt strongly about the
correctly and products were bought functionality value of the products
from a range of demographics and the unique designs were also
(largely males and all age ranges) very popular (Appendix 5.0 & 8.0)
- Demand for both wallets and prints - The market was not price sensitive
werent estimated correctly and to the wallets and therefore raising
therefore the business had a large the price did not decrease sales
amount of stock left on hand (Table (Appendix 2.1)
5)
- The market was price sensitive for
one category of the business
products (Appendix 2.2)
5. Competitor Analysis
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1. Financial Situation
Negative Positive
- The business did not anticipate the - The company was a niche player as
effect that Urban Wrap would have our product was unique and catered
on our business when being placed to a specific consumer need which
next to our stall (Appendix 5.0) is what the business had intended
- Decaf Designs was the least (Appendix 5.0)
profitable of all our competitors - The business only had a few indirect
which is unfortunate as the competitors and for the majority
business was targeting a niche they were mostly different in their
market looking for sales over value proposition, therefore making
market share (Table 7) Decaf Designs less interchangeable
(Appendix 8.0)
- Decaf Designs market share was
fairly even amongst competitors
which means that customers were
shopping and spending as much at
the stall as much as at their
competitors (Table 7)
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Identifying the correct target market with which to position your products
towards is a key marketing concept as it represents the foundation to a
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Several studies indicate that branding and brand equity are key priorities
for most companies as they enable consumers to have an emotional
association with their brand allowing for closer relationships and increased
loyalty with customers (Haig, 2003; Ibeh, 2005; Keller, 2009). The Brand
Resonance Pyramid (Figure 4) indicates that in order to achieve high
brand equity, the foundations of brand identity and awareness must be
firmly established. Creating a brand that relates to consumers, that draws
meaning from and is identifiable by its logo, stall design, products, etc.
ensures the added intangible value creates a memorable association (Hall,
1999; Keller, 2009).
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Forecasting demand for new products entering the market is even more
difficult, as predictions are generally made using historical data of
alternative products in a similar category or through extensive market
research (Chambers, Mullick and Smith, 1971). Therefore, if Decaf Designs
had utilised historial data forecasting techniques or delved into further
research they may have reduced demand uncertainty and consequently
avoided being both understocked on wallets and overstocked on prints.
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Disadvantages:
The research methods conducted in order to collect this data can be
costly, and require primary research of sizeable populations which can
also be time-consuming (McQueen and Miller, 1985). In addition, failure to
target secondary or multiple consumers can cause the business to lose
potential consumers and consequently potential sales.
Disadvantages:
The marketing and advertising messages may differ for each market
which may create an unclear or vague brand identity that could confuse
consumers (Chand, 2016). Growth potential is limited due to the smaller
target market, so it may be difficult to expand to larger audiences in the
future. It may also increase expenses due to increased production, design,
promotion, market research and management (Brooksbank, 1996). There
is also still the potential of targeting the wrong group once again.
Disadvantages:
Keller (2009) states that on social media, consumers define the rules of
engagement; meaning that they have the ability to ignore or avoid the
advertising and attempted interaction a business is putting out. It is easy
for businesses to get drowned out by the noise of thousands of other
competitors, as well as consumers slowly becoming desensitized to online
advertisements.
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Disadvantages:
If the business doesnt choose or find an appropriate partner to join with,
this can lead to consumers assuming the partnership is not genuine
forming a negative view or opinion of both brands (Stuart, 1993). There is
also potential risk that consumers may only recognize one of the brands
linked in the partnership due to the clutter of advertising for both
businesses. Furthermore, expenses may be incurred if joint partnerships
require some form of payment through commissions, revenue share,
discounted prices, etc. (Farrelly, Quester and Greyser, 2006; Friedman,
2016).
Disadvantages:
Chambers, Mullick and Smith (1971) identified these techniques as being
largely time-consuming and incurring significant costs. Furthermore,
qualitative data is generally subject to certain bias, can be easily
influenced and be subject to misinterpretation and prove difficult to
analyse (Taylor, Bogdan and DeVault, 2015).
Disadvantages:
Generally, to improve accuracy there needs to be significant amounts of
historical data or data can be sourced from businesses currently in
operation in the same industry but this may lead to further inaccuracies
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with product variances, quality, production cycles, etc. (Archer, 1980). The
method also has several limitations as it makes the assumption that all
external factors, influences, sales, etc. wont change and will have the
effect on past trends (Chambers, Mullick and Smith, 1971).
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8.0 Appendices
Appendix 1.0 Ratios
The following ratios were found using figures from the Profit and Loss
Statement (Figure 1). The ratio in Appendix 1.2 was compared to
benchmarks as detailed by the ATO. When comparing these benchmarks,
Decaf Designs was assumed to have an annual turnover of $65,000 -
$250,000 and in the category of discount and variety stores (homewares,
stationery, gift wares, etc.) (ATO, 2016a).
Appendix 1.1
Cost of Goods Sold
Stock Turnover Ratio = opening+ closing stock /2
1566
= 274 +201/2
= 6.59
The Stock Turnover Ratio indicates the number of times stock is sold and
replaced in a selected time period (e.g. annually) (Queensland
Government, 2016). The time it takes for stock to sell can be found by
dividing the stock turnover ratio by the number of days in the period (in
this case 2 days) (ATO, 2016b). Therefore, the time it is predicted to take
to sell all the stock on hand initially produced is:
6.59
2 = 3.295 days to sell all the stock on hand
Appendix 1.2
Cost of Goods Sold
Average Cost of Sales Ratio = Sales
1566
= 2535
= 61.78%
Benchmark for Average Cost of Sales Ratio = 49%
Appendix 1.3
Gain
Return on Investment (ROI) = ( InvestmentCost of Investment )
Cost of Investment
(2821)
= 21
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= 33%
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Quantity Price
17 $40
30 $50
% change in price = 20%
% change in quantity = 43%
Appendix 2.2
Quantity Average
Price
3 $30
23 $15
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Appendix 4.1
Team Development Feedback
(Questions 1, 11) (Questions 2, 13)
Your score is 6 out of 10 Your score is 7 out of 10
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