Explain how marketing helps business and addresses challenges in competitive markets.
Learning outcome 1: Demonstrate an understanding of the marketing mix.
Learning outcome 2: Explain how marketing helps business and addresses challenges in competitive markets.
Learning outcome 3: Identify marketing solutions to address a particular business challenge.
Learning outcome 4: Describe the impact of globalisation on competitive markets.
OVERVIEW
Prepare a written report that identifies how a company is currently applying the elements of the marketing mix to their brand and explains how the organisation can adapt the marketing mix to solve the challenge of brand extension.
DESCRIPTION OF THE TASK - WHAT ARE YOU BEING ASKED TO DO?
The task is one piece of work that takes the form of a written report and is based on the provided case study.
Assignment Brief
DETAIL ON THE REPORT - WHAT ARE YOU BEING ASKED TO SUBMIT?
CASE STUDY TASK: 1,500-word report
A common challenge that small businesses within niche markets face is how to increase their profit, revenue and loyal customer base, without moving into the mass market field. It is the role of marketing to address this issue and to provide a solution that will allow a niche business to achieve its aim of growth and expansion whilst remaining in the niche market - a common marketing tool used for this is brand extension.
Whitehouse Farm Shop
Whitehouse Farm is a family-run farm that has been operating as a dairy farm for over 50 years. Six years ago the family opened a shop on the premises which specialises in selling products made on the farm. The aim of this expansion was to help overcome the current issues affecting the UK dairy industry and British- based farmers (e.g., the decrease in customers and subsequent drop in profit and revenue).
Within the local area there is only one other business in direct competition with Whitehouse Farm. This firm also offers farm-fresh` products; however, it has a wider product portfolio so also offers customers fruit, vegetables and craft supplies.
Also in direct competition to Whitehouse Farm is a large chain supermarket that is approximately 8 miles away, where customers can buy the same products.
Whitehouse Farm`s product range includes dairy products such as cheeses, milk and a few flavours of ice cream, as well as additional products such as home-made cakes and pastries, along with minimal meat products and eggs.
At present the farm charges a small percentage above the cost of producing/making its products, which are only sold in the farm shop itself. The business uses chalkboards outside the farm and posters in surrounding villages to promote its products.
Whilst this brings in a steady income for the family - some 30,000 per annum - they are looking to substantially increase the revenue generated from the shop, with the objective of securing a more financially stable income. A key area the family are considering is brand extension.
Whitehouse Farm have enlisted the help of a marketing consultant to aid them in implementing their brand extension.