Reflective Case Study PDF

Preview

Summary

Reflective Case Study for the QUTopia simulation - have not received grade back yet...

Description

REFLECTIVE CASE STUDY Marketing Planning and Management – AMB240

Word Count 2421 Tutor: Sandy Sergeant – Due Date 02.06.2019

Table of Contents Executive Summary...............................................................................................................................2 Summary of Marketing Outcomes.........................................................................................................3 Marketing Objectives.........................................................................................................................3 Profit and Loss Statement..................................................................................................................3 Market Share Calculations.................................................................................................................3 Description of Marketing Management Activities.................................................................................4 Analysis of Marketing Management Issues: Problem Identification......................................................5 Competitors.......................................................................................................................................5 Stall Layout........................................................................................................................................5 Statement and Evaluation of Alternatives.............................................................................................6 Competitors.......................................................................................................................................6 Solution 1: Demand Based Approach............................................................................................6 Solution 2: Porter’s Approach.......................................................................................................6 Evaluating Alternatives..................................................................................................................6 Recommendation..........................................................................................................................6 Stall Design........................................................................................................................................6 Solution 1: Spatial Behaviour.........................................................................................................6 Solution 2: Professional Sign..........................................................................................................6 Evaluating Alternatives..................................................................................................................7 Recommendation..........................................................................................................................7 Individual Critical Reflection..................................................................................................................8 Duties................................................................................................................................................8 Key attributes.....................................................................................................................................8 What could have been done differently?...........................................................................................8 Recommendations.................................................................................................................................9 Business.............................................................................................................................................9 Individual...........................................................................................................................................9 References...........................................................................................................................................10 Appendices..........................................................................................................................................11 Hairclouds Stall................................................................................................................................11 Hairclouds – The Product.................................................................................................................12 Example Facebook Post...................................................................................................................13 Some Competitor Stalls...................................................................................................................14

1

Executive Summary The aim of this Reflect Case Study is to unpack how Hairclouds performed throughout the QUTopia simulation for Semester 1, 2019. Our brands ambition is to help young, environmentally conscious people express what makes them unique. In order to support the analysis, we will draw upon Marketing Theory. Three Marketing Objectives were created before the Market Days through the SMART framework. Hairclouds achieved one out of three objectives: -

Sell 20 units of Market Day 1 – achieved 20 likes on Facebook before Market Day 1 – not achieved Make a profit by the end of Market Day 2 – not achieved

Although not all of Hairclouds objectives were achieved, two key problem areas were identified as potential problems for the stall. These include lack of knowledge about competitors and the stall design. After evaluating these problem areas with marketing theories, two recommendations have been proposed. Firstly, it is recommended that Hairclouds implement the demand based approach in order to successfully find their competitors in the market and be able to properly create their production and pricing to gain a bigger share of the market. Secondly, Hairclouds should change the spatial behaviour of their stall to give customers the ability to view and purchase the products at ease. It is also discussed how I upheld my responsibilities as Production Manager. How I led the team in the production of the product and some of the things that I could have done better. A recommendation for myself and for the business is then provided. The recommendation for the business is to proactively learn more about its competitors and the recommendation for me individually is to take charge of and introduce the second product.

2

Summary of Marketing Outcomes Marketing Objectives Sales Promotion Profitability

Objective To sell 20 units on Market Day 1 To have 20 likes on our Facebook page before Market Day 1 To make a profit by the end of Market Day 2

Outcome Objective achieved. Sold 40 units on Market Day 1 Objective not achieved. 13 Likes on Facebook page. Objective not achieved.

Table 1: Marketing Objectives

Profit and Loss Statement

Table 2: Final Profit and Loss Statement

Market Share Calculations

Table 3: Market Share Calculations

3

Description of Marketing Management Activities Financial Situation Negative Positive - Hairclouds did not achieve profitability - Hairclouds sold out of all stock just before the time ran out. Which shows they perfectly predicted demand - They set a competitive price for their product Company Analysis Positive Negative - Hairclouds had a very interactive team that - Only one member of the group was able to found ways to help with production and sew, which made production of the were always willing to take time out of their Hairclouds slow and time consuming busy schedules to meet up - The Facebook page was not as successful as - The group stayed in contact throughout the hoped. This could be put down to the weeks via Facebook Messenger. This made competitors in the market communication very easy and allowed - They did not introduce a second product like discussed them to share ideas as soon as they were thought. Marketing System Positive Negative - Being at a High Exposure Stall (22) there - Hairclouds attempted to do an online was a lot of foot traffic which was very competition (Guess How Many Hairclouds helpful for business are in the Jar). Someone did win the - Hairclouds attempted to do roaming sales competition except she never claimed it and the team did not follow her up after and even though not many Hairclouds were the initial tag. sold this way they were able to promote - Facebook promotions and posts got lost in their brand and sent a lot of customers over the crowd due to all the Scrunchie to the stall competition. Customer Analysis Negative Positive - Hairclouds were unable to get our - The identified target market of woman of secondary target market for men with long all ages proved to be accurate hair. Men did buy scrunchies but as gifts for women Competitor Analysis Negative Positive - There was a lot of competitors in the - The business had competitive pricing market for our product compared to the competitors which allowed them to stand out - Hairclouds did not have the most eyecatching stall out of the competitors Individual Analysis Positive Negative - Came up with the idea to do scrunchies - I don’t have any building skills so was - I was the only team member that could sew unable to help in making our stall more - Brought the speaker on the second market legitimate day - Created majority of the Hairclouds close to - Provided the table, plant, polaroid, the market days so we didn’t have a lot of whiteboard and lollies for the stall photos of them for our Facebook - Shared ideas along with the rest of the promotions team Table 4: Marketing Management Activities

4

Analysis of Marketing Management Issues: Problem Identification In this section of the Case Study two issues that arose during the Market Days will be identified. These issues are not paying enough attention to all the competitors in the market and the stall layout.

Competitors Scunchies were the most common product sold at the Market Days with 7 stalls out of the 77 selling Scrunchies. A fault of Hairclouds was that they did not pay enough attention to what the other Scrunchie businesses were doing and therefore were unable to stand out from them. Identifying the competitors is crucial for businesses to be able to properly plan attack and response strategies (Aspers 2018). Hairclouds had a marketing strategy to stand out from our competitors which was to bring in a second product for Market Day 2 (tie dye socks) thereby expanding the target market. This plan fell through and the business suffered because of it. Hairclourds sold the second lowest amount of Scrunchies out of all the stalls. They had competitive pricing compared to the competitors, however, it was potentially too low as they were unable to make a profit. They did not properly identify their company’s brand identity like Lilla the Label and Escape to the Jungle did very well. Having a proper brand identity translates into a positive brand image and allows your brand to stay in the mind of the consumer (Piehler, King, Burmann & Xiong, 2016). They had a unique brand idea with Hairclouds and the reinvention of the Scrunchie, however they were unable to establish that through their promotion. Hairclouds should have payed more attention to what its competitors were doing so that they would have been able to stay competitive.

Stall Layout For the Market Days Hairclouds’ stall deliberately took on a “suitcase rummage” style. This was meant to make people feel welcome and be able to enter the stall and interact with the products easily. However, this ended up being a downfall for the business as the stall was low to the ground and not able to stand out. A lot of different sources tell us that it is important for a stall to be visible at eye level and then to focus on above and below (Finders Keepers 2019). On the second Market Day Hairclouds had the perfect opportunity to change up their stall and introduce a new level, however they kept it the same and focused on other senses to bring in customers. We brought in a speaker to play music and grab customers attention. Having music playing sets a mood and can change the way consumers are feeling when shopping, happy music would compel them to buy fun products, where sad music would pull them more towards sentimental products (Whiteley, Bennett & Hawkins, 2004). We also brought in cloud lollies that we gave out for free; this brought in quite a few customers and got our stall more notice. However, we should have brought in a table or hung the sign so that we were more visible.

5

Statement and Evaluation of Alternatives Competitors Solution 1: Demand Based Approach A solution for understanding your competitors in the market could be the demand-based approach. This approach focuses on the attitudes and behaviours of the customers and how the competitors classify their behaviour of their brand purchase patters and their attitude toward competing offers (Clark & Montgomery, 1999). Using special analysis to represent and identify different competitive market structures. Dividing a new theoretical intricate scaling procedure that is backed up with real consumer choices would allow Hairclouds to be able to estimate and show competitors differences (Wind, Grewal & DeSabo, 2005). Solution 2: Porter’s Approach Porter’s Approach has been a big contributor to understanding how competitive environment influence strategy. Competition comes from the underlying economic and competitive forces within an industry. Porter believes that a competitive strategy is directly related to the firm’s position within the industry (Wilson & Gilligan, 1992). This approach is still relevant as it has a well-defined structure, it’s feasible, clear, simple and compliments the other main approaches. It is a convenient approach to get a competitive advantage and come up with a competitive strategy (Stringa & Ormanidhi, 2008). Evaluating Alternatives Customer Pain 1 1

Ease to Implement 3 2

Weighting Demand Based Approach Porter’s 1 3 Approach Table 4: Evaluating Alternatives for Competitors

Effect on other Marketing Processes 5 5 2

Speed to Implement 3 3 2

Total

11 8

Recommendation It is recommended that Hairclouds implement the demand based approach to recognise their competitors in the market. Hairclouds will be able to develop their production and pricing strategies by identifying businesses that are targeting similar customer behaviours and attitudes and therefore claim more market share.

Stall Design Solution 1: Spatial Behaviour Hairclouds should rethink their spatial behaviour. Changing the stall layout to make it more eye level would drastically change how the stall is viewed. Presence and flows can be largely explained by layout and visual stimuli (Zacharias, 1997). Bringing the stall up and making it more a part of the marketplace would allow consumers to see Hairclouds and give them the opportunity to view and purchase the products. Solution 2: Professional Sign Hairclouds could think about investing in a professional sign to replace their whiteboard sign. Having a visible, professional sign with their logo would help Hairclouds to be remembered by their customers. It would bring an element of quality and care into their

6

brand. Immediate, quick visual impressions would be made on potential customers. A sign would also give continuous exposure (Wroblewski, 2018). Evaluating Alternatives Customer Pain

Ease to Implement 3 3

Weighting 1 Spatial 1 Behaviour Professional 1 2 Sign Table 5: Evaluating Alternatives for Stall Design

Effect on other Marketing Processes 5 5 4

Speed to Implement 3 4 3

Total

13 10

Recommendation It is recommended that Hairclouds edit their spatial behaviour. Changing the layout of their store is in their best interest. Bringing their stall up to eye level will ensure that they are able to be seen and take full advantage of their high exposure stall. This will bring more traffic and customers to the stall therefore resulting in more sales.

7

Individual Critical Reflection Duties As Product Manager it was my job to look after the product. We started out with three potential ideas for a product, Scrunchies, Succulents and Bubble Tea. By week 3 we had decided on Scrunchies. Throughout the Semester when we learnt about the many competitors in the market and started thinking about a Secondary Product. I thought of the idea of tie dye socks for men, as fun socks are trending at the moment. Another team member thought of giving away seedlings with every recycled Scunchies in an effort to support the environment and “give back”. The team latched on to the recycled, green idea and supported the seedlings. Unfortunately, we did not have a lot of luck with this idea in our pitch. About a week before Market Day 1 we decided to do tie dye socks for Market Day 2, however only two pairs of the socks were ever made, and none were brought into the QUTopia simulation. When creating the Hairclouds recycled fabric was used for the first 8 or so. We then ended up purchasing fun, bright fabrics from Spotlight in an attempt to stand out from our competitors. The scrunchies were kept in a bag all together so none were lost or damaged. They were all checked after a bulk amount was made to make sure they were all made with care and kept their quality. The Hairclouds were packaged with a simple cardboard tag with the business name on it and a piece of white twine around the one or three Hairclouds that were purchased.

Key attributes There are certain attributes that the Product Manager needed to possess in the QUTopia simulation. Having good relation skills was one of them. Fortunately, all the colleagues in Haircluouds had great social skills and were easily able to work collaboratively with the rest of the team. Being the only one who could sew I naturally had a lot of knowledge on the product development of the products. I was also very privy to the pricing, promotion and distribution as our team was frequently in contact over Facebook Messenger and meet ups and we discussed all these things regularly. Being the Product Manager I frequently had to make creative and objective decisions on behalf of the team. These decisions included fabric patterns and some stall design. When we met up to make a bulk of the Hairclouds for Market Day 2 I had to lead the group and tell them ways they could help. I had teams cutting out the fabrics, turning the fabric inside out, cutting elastic or pinning fabric. It was very easy to get the teams assistance as they all listened and were willing to help. It was a simple task being a team player within the business of Hairclouds.

What could have been done differently? As I was the only one who could sew it was up to me to create the Hairclouds. I believe that I could have started making a bulk of the product a lot earlier on in the process. This would have given us more time to take photos and potentially would have helped our Promotion Manager. Also I could have pushed the secondary product (tie dye) socks because I believe that having the socks would have really helped our business. As Product Manager it was my job to put that into motion. Overall, the Hairclouds staff handled their jobs as Managers very well. I believe that I did my part as Production Manager. However, in the future I would make

8

sure to think about what is best for the company and would introduce the secondary product.

Recommendations Business Out of all of the recommendations mentioned above, Hairclouds should choose one to focus on. It is recommended that Hairclouds implement the demand based approach to gain a more competitive stance within the industry. This is important to gain more market share and will result in Hairclouds making a profit.

Individual When looking at ...