Impact of Marketing Mix on Revenue: A Case Study of Whitehouse Farm

This case study analyzes the impact of marketing mix on revenue for Whitehouse Farm, a small dairy business. It explores the factors of brand extension and assesses the strategies implemented by the farm. The study also examines the impact of these strategies on revenue, profit, and customer base.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview......................................................................................................................................1
Impact marketing mix creates on revenue...................................................................................1
Brand extension factors................................................................................................................2
Assessment of brand extension strategies....................................................................................3
Assessment of a good brand........................................................................................................3
Impact of strategies on revenue, profit and customer base..........................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Small businesses are those firms which have limited resources and funds to operate with.
They have to carry out their marketing activities within their financial scope. Small business
owners also have to aim for growth in their target market by getting ahead of competition
(Krasyuk and et.al., 2017). In this case study, Whitehouse Farm Shop has been considered which
is a dairy farm run by a family. Analysis will be made in this study on impact marketing mix
creates on businesses. This essay is about the marketing activities which are carried by small-
scale firms like Whitehouse Farm and it is important to get detailed insights about their
marketing and promotional activities.
MAIN BODY
Overview
Whitehouse farm deals in dairy business for over 50 years. It is managed by a family
which has started a shop 6 years ago in the premises which sells farm products to the customers.
Its product range includes milk, cheese, cakes, ice-cream etc. It serves a substantial base of
customers in the local area where it is based. It has a steady income of 30000 pounds per annum
and thus can be classified in the category of small business.
Impact marketing mix creates on revenue
Marketing mix of a business which includes product, price, place and promotion has an
impact on the revenue of any business. Whitehouse Farm being a small family run business has
to develop an effective marketing strategy to counter the growing competition level in the
market. The ways in which marketing mix impacts its revenue are-
Product- A product is a good or a service sold by a firm to fulfil the needs and demands
of its customers. The products being sold by Whitehouse Farm are dairy products. The impact of
product in context of Whitehouse Farm is-
Positive impact- The products sold by Whitehouse Farm have a positive impact on its
overall revenue as these goods are of high demand among the customers. As these goods are
having a high demand in the market because of being essential goods they can generate many
customers.
Negative impact- The goods of Whitehouse Farm are highly perishable in nature which
can negatively impact the revenue. These products though essential are sold by many other
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competitors and due to such competition the firm may be forced to reduce prices reducing the
revenue.
Price- It is the rate at which the product is sold to the customer. Whitehouse Farm
charges a reasonable price for its dairy products.
Positive impact- The price set by Whitehouse Farm for its goods is less than that of its
competitors which therefore enhances its revenue. These goods generate a good revenue for the
firm because of being sold in higher numbers due to more demand.
Negative impact- The price of Whitehouse Farm does not allows it to substantially boost
its profit share. Therefore profit share remains lower. It is forced to maintain a lower price due to
high-level competition which is limiting its growth chances.
Place- It is the location where a business operates in . Whitehouse Farm operates in its
local area and therefore has not expanded to different places.
Positive impact- The area in which Whitehouse Farm operates has a good base of
customers which make purchases from it. This boosts its revenue. It has been operating in this
place for many years and has created a substantial customer base.
Negative impact- Lack of expansion in other areas of country limits the growth of farm.
This limits the revenue growth. It needs to grow to other parts of country so that it can increase
its level of profits.
Promotion- It means the strategy undertaken to increase sales of products and services.
Whitehouse Farm uses different methods to promote its goods among customers.
Positive impact- Promotion done by Whitehouse Farm enhances the sale of its products
and services and increases its revenue. It can lead to increase in its customers as the firm looks
for more ways to promote its products.
Negative impact- Whitehouse Farm uses traditional techniques for promotion which are
insufficient to counter growing competition and thus impacts revenue. It has to look to adopt new
techniques to appeal to new generation of customers.
Brand extension factors
The elements of marketing mix can be used to consider extension of brand which can
lead to high growth (Maduku, Mpinganjira and Duh, 2016). In the context of Whitehouse Farm,
factors of brand extension needed to be considered are as follows-
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Product- Whitehouse Farm can consider extending its product range to other dairy
products like yoghurt, buttermilk etc. which will enhance in it extending its brand. It can cover
these goods easily as they are related with the current product line it offers. By doing so it can
ensure that its revenue increases steadily which will help it in realizing its long-term aim of
maximization of profits.
Price- Whitehouse Farm can set an attractive price for its different products which will
attract the customers towards them and enhance its overall sales. It will also help in evading
competition and extending brand in areas not covered by farm where it needs to penetrate the
market by setting low prices for goods. By adopting an aggressive pricing strategy the firm can
make sure to leave behind its competitors.
Place- Whitehouse Farm can expand its operations to other places in U.K. where it will
get a good customer base. It will also help in extending its brand image to other areas of country
which will help in its aim of achieving substantial growth. By expanding to other places in the
country the firm will build a substantial base of customer base there which will help it in
maximizing profits.
Promotion- Whitehouse Farm currently uses traditional marketing and promotion
techniques for its products and services. Use of modern techniques like digital and online
marketing, social media will help in extension of brand image and improving profitability level.
By using digital techniques for promotion it can appeal itself towards the new customers.
Assessment of brand extension strategies
The brand extension strategies need to be assessed frequently so that their effectiveness
and efficiency is checked by the firm (Yang and Gabrielsson, 2017). The Whitehouse Farm can
assess the brand extension strategies as follows-
Measuring brand equity- Whitehouse Farm needs to value the goodwill of the brand
among the customers. By doing so it can see whether its brand extension strategies will be
successful or not. This is helpful because a good brand image helps in attracting customers over
the years in the long-run.
Identifying potential risks- Whitehouse Farm needs to identify the potential risks
present. This will enable it to do risk assessment of implementing its brand extension strategies.
This helps in identification of potential risks and preparing effective strategies to mitigate these
risks.
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Leverage from core competencies- In the context of Whitehouse Farm, it is necessary
that the new product leverages all the skills and know-how of the business. It should see whether
the new product it is planning to launch has the potential to stay in the market. This is necessary
because the product must be able to survive in the market to be profitable for the firm in the
long-run.
Marketing research- It is needed to assess the market potential of a particular product.
Whitehouse Farm must conduct it to find out whether its brand extension strategy would be
successful or not. It can research regarding the new dairy products it is planning to bring, or the
new place where it is planning extension. By assessing the market potential the impact of
strategies can be identified.
Logical Fit- The new product should be able to be linked with the parent products of the
company. If Whitehouse Farm has to launch products which can be linked with its existing goods
its needs to identify their logical fitness for the success of its brand extension strategies. As the
parent product is milk it can have various milk-related products to ensure availability of wide
variety of goods to the customers to maximize the profits.
Assessment of a good brand
A good brand is made by different factors which allow it to develop an image among
customers (Sajid, 2016). These factors are in context of Whitehouse Farm are-
Knowledge of target audience- A brand which has knowledge of its target market will
certainly be successful in the market. Whitehouse Farm knows that its target audience resides in
villages. Therefore it will make strategies for them accordingly.
Strong USP- A strong USP allows the brand to see extra benefits in its products.
Whitehouse Farm's USP is its popular products which are good in quality and are thus popular
among customers.
Out-of-the-box thinking- It is needed to ensure dynamism and in order to stay in the
market for a long time. Whitehouse Farm needs to be innovative in its marketing strategy so that
it can attract new generation of customers.
Consistency- A good brand is consistent in nature and delivers good products and
services consistently without fail. Whitehouse Farm has been doing so for years which has
allowed to stay in the business for a long time.
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Value- A good brand should provide value to the customers for the price which they are
paying for the products and services (Whalen and et.al., 2016). Whitehouse Farm provides
additional value to its customers with its goods and services which makes it popular amongst
them.
Impact of strategies on revenue, profit and customer base
The strategies implemented by Whitehouse Farm create an impact on the revenue, profit
and customer base. STEEPLE analysis in the context of Whitehouse Farm is as follows-
Social factors- Whitehouse Farm is affected by these factors such as customers' attitudes,
interests, opinions etc. It needs to take care of them while making its strategies as these factors
can impact its revenues, profit and customer base as change in attitudes of consumer can
positively increase revenues and profit.
Technological factors- Factors like new technology, new production technique etc.
affect a business. Whitehouse Farm needs to consider them as they can impact revenue, profit
and customer base of the firm as implementation of new technology can reduce its costs
substantially increasing its revenue and profits.
Economic factors- Factors like interest rates, condition of economy affect the business
of Whitehouse Farm. If condition of economy is at boom it will allow increase in revenue, profits
for the firm.
Environmental factors- Environmental factors like environmental laws, pollution laws
etc. affect the business. Strict environmental laws can affect the products of Whitehouse Farm
decreasing its revenue and profits.
Political factors- These factors are situation of politics, stability of government etc.
Whitehouse Farm's revenue and profits can positively increase if the political stability is ensured.
Legal factors- Whitehouse Farm is affected by legal rules and regulations of the
government. Strict rules and regulations can impact its revenue and profits negatively.
Ethical factors- These include morality, right behaviour etc. Whitehouse Farm can
ensure that it has right behaviour with its customers which will positively increase its revenue an
d profits.
SWOT analysis of Whitehouse Farm
Strengths Weaknesses
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 Growing economy means purchasing
power of the customers has increased
significantly. Growth in economy
means that the chances of making
profits are higher (He and et.al., 2017).
Whitehouse Farm can benefit from it.
 Strong customer base is required to
attain long-term success (Resnick and
et.al., 2016). Strong customer base
means that Whitehouse Farm's sales are
steady in nature.
 Lack of usage of new technology is a
weakness of Whitehouse Farm as it can
save its cost.
 Lack of use of digital marketing
strategies is substantially impacting its
increase in sales.
Opportunities Threats
 Expansion of market in other areas of
country gives Whitehouse Farm an
opportunity to grow itself.
 Potential of exporting its products in
other countries gives it an opportunity
to expand profits.
 Growing level of competition is a threat
for Whitehouse Farm.
 Lack of awareness among farmers for
quality can affect the business of
Whitehouse Farm.
CONCLUSION
From the case study it can be concluded that the marketing mix factors impact the way a
firm operates. There are different elements of brand extension. These elements identify the
factors affecting strategies of brand extension. They have to be assessed before implementation.
This ensures that they are implemented after thorough research. Furthermore, various qualities
make a brand's good image in the market. They are important to maintain the loyalty of
customers in the brand. Also, STEEPLE and SWOT analysis has been used to find out the
impact on revenue, profits and customer base. They are required to find out more about the
internal environment concerning the firm.
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REFERENCES
Books and Journals:
He, W. and et.al., 2017. An exploratory investigation of social media adoption by small
businesses. Information Technology and Management. 18(2). pp.149-160.
Krasyuk, I. A. and et.al., 2017. Marketing management in retail chains. International Journal of
Applied Business and Economic Research. 15(12). p.83.
Maduku, D. K., Mpinganjira, M. and Duh, H., 2016. Understanding mobile marketing adoption
intention by South African SMEs: A multi-perspective framework. International
Journal of Information Management. 36(5). pp.711-723.
Resnick, S. M. and et.al., 2016. Marketing in SMEs: a “4Ps” self-branding model. International
Journal of Entrepreneurial Behavior & Research.
Sajid, S. I., 2016. Social media and its role in marketing.
Whalen, P. and et.al., 2016. Anatomy of competitive advantage: towards a contingency theory of
entrepreneurial marketing. Journal of Strategic Marketing. 24(1). pp.5-19.
Yang, M. and Gabrielsson, P., 2017. Entrepreneurial marketing of international high-tech
business-to-business new ventures: A decision-making process perspective. Industrial
Marketing Management. 64. pp.147-160.
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