Impact of Marketing Mix Elements on Total Revenue and Brand Extension Strategies
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This report examines the impact of marketing mix elements on total revenue and discusses strategies for brand extension. It also includes a PESTLE analysis and SWOT analysis to create a strong brand.
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Case study 1
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INTRODUCTION Marketing refers to a process ofplacing a right goods on the right positionat a correct period with a right price. It is an action of promoting and trading product offerings including market research and advertising. It is based on whitehouse farm in UK that operates its business as a dairy farm for over 50 years. This report explainsapositive and negative impact of the marketing mix elements on the total revenue and it also implement various factors that make the new strategies for brand extension which is very important for a company to earn more and more profits. At last it explains the pestle analysis and swot analysis to make a brand a good brand (Kreutzer, 2015). MAIN BODY Elements of marketing mix currently being implemented by an organisation Overview of firm Whitehouse farm is one of the prominent business that is run by a family in its dairy farm since 50 years. A company can deals in various products that is made on the farm. The company earn a total income of£30000 per annum.The main aim of the firm is to overcome the current problem that is faced by an organisation like decrease in customers, revenues and profits. For this business make can analyse the market with the elements of the marketing that can be explained below. Marketing mix elements are the important factor that every company implement it to know their profits, image in the market place. It also helps in making different tactics and strategies toencourage their goods offeringsin the current market.Whitehouse farm, need to examine these elements by analysing the affect of revenues and customer base.It involves 4 Ps of marketing that are explained below. The product –It defines thoseproducts and services that sellin the market to its targeted consumersby a business to get more and more returns.In reference ofWhitehouse farm, company offers various products to its customers fruits, vegetables and craft supplies. Therefore in this market, rival firms also present that sales same products but wide product range this affect the Whitehouse company sales like cheeses, milk and alittle flavours of ice-cream and manyotherproducts like meats and eggs. It reduces the company sales and profits. But at the same time regular customers are nor switching to 3
another company because of loyalty it is the main positive impact on the company sales and revenues.Because of limited range of products its revenues is affected negatively, because the competitors can sale variety of products this will reduce the customer base for the organisation.(Faßmann and Moss,2016).The price –It refers to that amount on which company sales its products to their consumers to produce moreand more profits and helps in making complex decisions regarding the sales of the offering in the company. In context of Whitehouse farm, it uses value- based prising in which it sales their product offering to its consumers on the limited price which is only worthy to the products. It will create aactivist impact on company sales,revenues andattract more and more customers.It also create negative impact on the company sales and revenues because of its competitors sales many product range so the customers attract towards them whatever they cost the price.The place-It defines as a distribution channel that an organisationcan use in selling their offerings. It involves the cycle to manufacturing to selling. In context of Whitehouse farm it sold their products in their farm only.This will create negative impact on the company sales because of this its decreases the revenues like they only attract small amount of consumers and a local users not a wide range of users. For this company use to operates their shop in other locality to attract more and more users(Pike, 2016).The promotion –It refers to that tool which is used to advertise the product offering in front of many peopleof a corporation to attract large number of users. In context of whitehouse farm, they use old ways to promote the goods to its consumers like posters, chalkboardsand pamphlets. This will affect the company sales in negative way thst it does not attract more and more peoples and does not create a brand image outside the local area. But it create a great impact on those customers who live in that area and use product of that company(Stern and Porr, 2017). As a marketing consultant, changes consider for its brand extension within every element of marketing mix and the new strategies for brand extension be implemented by organisation In this manager of Whitehouse firm, plan some strategies that is useful for brand extension. It helps in increasing the sales andreturns of the business enterprise. It includes various strategies that are described below. 4
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Differentiation in product –This strategy is used to compete with competitors in the current market place. In context of Whitehouse farm, manager use this strategy for increasing the sales and revenue and maximise the growth. For this company can differentiate its product from their competitors like they sale organic veggies and fruits so itincreases its sales by attracting more and more users.Today’s people are more conscious about their health because of this company can choose to produce an innovate goods that is organic veggies which cannot harm the person’s health and it attracts the large consumer base.This strategy helps in capturing the vast area because differentiation in the goodsoffering attract the old customers as well as new people because of innovative products(Akbar, Omar and Wadood, 2017). E-commerce- To increase the sales, profit by providing a organic veggies and fruits in a Whitehouse farm, manager of a company can make a strategy to sell their products and services over the internet or electronic commerce by using social media as a tool. In this, services and offering of goods are provided by the organisation over the internet to its targeted customers. In these company can transact money through online media. This will attract the large number of customers in a very short period of time. It also helps in extension of a brand in the broad area and it maximise the sales of a firm. Value – based pricing-It is a next strategy that a manager of a Whitehouse farm can use to increase its sales by brand extension. For this company can use value based pricing in which the price of a product are set primarily but not exclusively. In this pricing strategy firm can set thecostaccording to the customers rather than the cost of the product offering or services,. It is very useful to generating more sales and increase profitability in the current market. Social -media-To stretch the brand by promoting and launching new product range in the market Whitehouse farm, can use social- media strategy. Where they attract multiple number of people in a limited time period and low cost. This helps the company to generate profitability and sales in wide area. Social media is the great platform to increase the sales and image of brand in the market place(Okumus and Cetin, 2018). 5
Different factors that makes a brand a good brand For make a good brand image in the market Whitehouse farm use various factors that are explained below. For making a brand a good brand STEEPLE is an essential tool for best marketing planning and strategy(Puddle, 2015). Social factor affects th image of a Whitehouse farm company brand image. It is very significantforan organisationto make and provide thosecommoditiesto the customers that does not harm the environment and a people life’s. In this firm can sales healthy meal like dairy products and organic fruits and veggies to its customers.This will attract more people to buy their products and it also makes a brand a good brand. As technology is advanced day by day, it creates a pressure on companies to go with new technology to make their brand a good brand. Inthe background ofWhitehouse farm manager can use social media technology because in today;s world people are using social media very much. To promote their brand and product on a wide scale company can use this technique this will help in increasing the goodwill of a brand in a market(Purvis, 2016). Economic condition of a country can influence the business and its brand. To increase the sales and make a brand a good brand, Whitehouse farm can use value based pricing because of Brexit in UK it will affect the peoples income. To increase the sales in a difficult time can sale their products according to the customer needs. This will increase the brand image in the market. Political and legal factor also create a impact on brand and make a brand a good brand. In this Whitehouse farm can follow the employment law so they will very efficiently and complete the target on time. Whitehouse farm can use and make those products that does not harm the environment of a society. This will attract number of customer to use their products and it will increase the sales and the profits and makes a brand a good brand(Baker and Magnini, 2016). CONCLUSION From the above research report it is to be summarized thatcompany can use different elements of marketing mix toenhancethe sales, profit and revenue of a firm. Further it shows the various strategies that help brand extension of Whitehouse Farm so it maximises the sales and profitability in the current market place. At last it explains the external factors that helps in making a brand a good brand(Pike, 2015). . 6
REFERENCES Books and Journal Akbar, F., Omar, A. and Wadood, F., 2017. The Niche Marketing Strategy Constructs (Elements) and its Characteristics-AReviewoftheRelevantLiterature.Galoreinternationaljournalofapplied sciences & humanities,1(1), pp.73-80. Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality marketing and building the constituency model for hospitality marketing.International Journal of Contemporary Hospitality Management. Faßmann, M. and Moss, C., 2016. Instagram als Marketing-Kanal. InInstagram als Marketing-Kanal(pp. 13-21). Springer VS, Wiesbaden. Kreutzer, R.T., 2015.Digitale Revolution: Auswirkungen auf das Marketing. Springer-Verlag. Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination.Journal of Destination Marketing & Management,9, pp.340-346. Pike, S., 2015.Destination marketing: essentials. Routledge. Pike, S.D., 2016. Destination Marketing Organizations–Research opportunities in an era of uncertainty. InBookofAbstracts-6thInternationalConferenceonTourism.InternationalAssociationfor Tourism Policy (IATOUR). Puddle, T., 2015. Marketing essentials for veterinary practices.In Practice,37(5), pp.259-261. Purvis, J., 2016. Human resources marketing and recruiting: Essentials of digital recruiting. Stern, P.N. and Porr, C.J., 2017.Essentials of accessible grounded theory. Routledge. 7